$669 billion, page-33

myronc,

Sorry to hear that you are so busy. I'll happily give you some basic numbers to save you some time. Wouldn't normally do somebody's calcs for them but I know what it is like to be snowed under.

Heres my quick numbers. Please fell free to pick holes in them.

1) Sec Notes = 107,399,299 with face value of 13.5c = $14,498,905 in convertible debt

2) Not sec notes = 32,355,497 with face value of 13.5c = $4,367,095 in convertible debt

3) New convertible securities issued to ASOF for $900k of funding


ASOF securities:

a) 91% of secured notes = 91,733,362 @ 13.5c = $13,194,003
b) New conv securities = $900,000


Securities owned by the rest of us:

c) 91% of secured notes = 9,665,936 @ 13.5c = $1,304,901
d) 100% non secured notes = 32,355,497 @ 13.5c = $4,367,992
d) Equities = approx 2.78 billion


The proposed change to the notes debt conversion rules provides the following concession:

"90% of the average of the five lowest daily VWAPs of Shares during the 20 Business Days preceding a conversion notice, rounded down to four decimal places"

This means that notes could be converted for as little as $0.0009. Without any deals being announced and with a dispute now raised by ASOF getting the market price down to 0.001 for a few days wouldn't be too hard them whamo, 5 day average VWAP of 0.001 * 90% = 0.0009.

Now ASOF convert their debt using this new rule giving them 15.660 billion shares. Now if every other notes holder did exactly the same thing on the same day that would result in approx 6.3 billion additional shares being issued to them. Add those 6.3 billion to the 3 billion already on issue and there is less than 10 billion shares held by all parties other than ASOF as opposed to the 15.6 billion held by ASOF.

Now if my math is even close 15.6 billion out of a total of 25 billion gives ASOF the a theoretical percentage of 62.4%. Now if ASOF actually honour their commitment for debt forgiveness that would reduce their convertible debt by $1.53 mil to $12,564,003 which would reduce the resultant shares issued under to above example to 13.96 billion. The adjusted total shares on issue would be 23 billion so ASOFs percentage would be a mere 60.7%. It does however seem that hsi bit might now be a point of dispute.

The above assumes that every other note holders cottons on quickly to what ASOF have done and rush in the paperwork and cheque before a couple of quick trades pump the vwap back up to 0.002 thus reducing shares issued to others.

As you can see the existing shareholders and their existing equity are largely irrelevant if debt is converted at levels possible under the proposed changes. Even including the more than 500 million shares issued as part of the rights issue there are still under 3 billion them. The equity could / would get dilluted down to virtually nothing, relatively speaking. The existing shares held by sharesholders will only represent about 12% of the total shares on issue under the above scenario.

To be honest there are loads of things that can happen here and lots of other games that could be played. I'm not here to tell you this is exactly how they are playing it or that they would bother dragging it out to any given extent but based on a relatively easily achievable conversion price of say 0.001 they have a significant majority and control of MST.

Sorry if you have found some contradiction in what I have said. I'm not running an agenda but just sharing what I see and what experience tell me.

myronc, you said "Having a nice story is one thing, GiddyYup - but of course it must also be underpinned by the facts, at least as far as we are able to determine. Where is your evidence that ASOF are about to be handed a soft path to 'majority control of the Company'?"

I have freely admitted I am not privy to inside information about what specifically the game plan is and I can't provide you the facts that prove anything categorically about what they will or won't do because none of us have them. I can however give you my logic, relevant details of the planned changes to the notes conditions and my numbers which demonstrate what could happen as a result. I believe I have done this honestly. I do as always welcome you to pick holes in them.

Things might go in a very different direction and I could be completely wrong about everything. I hope I am wrong because I make nothing if I am right but I could still make a nice tidy profit if I'm wrong.

Now, I sense my cander is no longer appreciated so I'll go and suffer my losses by myself elsewhere.