options query, page-3

Let me try and shed some opinion on that strange options transaction M12.

DRX are in a lot of JV's with MSC.

If MSC have not been selling their options, then I was trying to work out how they were going to come up with the $1.7 Million required to convert them in 3 short months.

I then saw that MSC had recently completed a Capital Raising for $3.5 Million just recently on the 13/07/07.

However, the MSC SPP prospectus doesn't specify anywhere that the funds will be used to excercise their DRXO options. In fact, is clearly states three other/separate uses of the funds.

Now the capital raising was partially underwritten by C V Alexander for $250,000.00

The MSC SPP was announced on 06/06/2007, whilst the options transaction you refer to (2.21 million @ 12c = $265,000) occured on 11/05/2007.

Could it have been C V Alexander offloading some of his options to shore up the MSC SPP at the request of the MSC SPP underwriter Novus Capital Ltd?

Perhaps.

The MSC balance sheet looks deplorable at best (excluding the $3.5 million which on face value appear not to be allocated to DRXO conversion), so I have no idea how they are planning on converting all their DRXO.
That is why I thought it would be MSC selling down the DRXO lately.

If the MSC SPP funds are all pre-allocated and are not intended for use to convert their DRXO options... then the only conclusion at this stage is that there could be around 6.8 million options coming onto the market at any time?