We are issuing a new European style cash-settled structured warrants to meet investor demand in a new trading year 2012. A Call Warrants ("CW") over the ordinary shares of GB Group which projected IPO on year 2015. The structured warrants will have tenures of approximately 36 months and will be listed on some time 2015 with issue size of up to 200 million with initial Call Warrant Price $0.50.

Let us look at an example that illustrates one of the potential benefits of our K.T.60 Warrants. Our projected IPO priced on the market will be $5.00 per share. In order to purchase 1,000 shares, an investor would need $5,000. However, if the investor opted to buy a warrant (representing one share) that was going for $0.50 per warrant, he or she would be in possession of 1,000 shares using only $500.

Because the prices of warrants are low, the leverage and gearing they offer is high. This means that there is a potential for larger capital gains. While it is common for both a share price and a warrant price to move in parallel (in absolute terms) the percentage gain, will be significantly varied because of the initial difference in price. Warrants generally exaggerate share price movements in terms of percentage change.

In this example, the gearing factor is calculated by dividing the projected IPO share price by the original warrant price: $5.00 / $0.50 = 10. The "10" is the gearing factor - essentially the amount of financial leverage the warrant offers. The higher the number, the larger the potential for capital gains.