Ann: Appendix 3B, page-27

Hi Ozgem, you will find that the con note holder has the option to convert, the company has no choice in issuing the shares. My interpretation of some of the posts was that some holders were thinking that the company was issuing new shares for cash, not a straight conversion. It seems as though the company did not negotiate reasonable terms which happens when you are not in a position of strength. The con note holder is taking advantage of a fall in the share price to get more shares-exactly what I would've done. If MNE had say a 12 month initial non convert window (fairly standard) then this would not have happened now and the share price would have hopefully been higher when the 12 months was up, however as I said before they weren't exactly negotiating from a position of strength. The company also finds itself in this position because of the delays in getting the mining underway and becoming self funding. Also general market sentiment is still very negative on mining and especially for micro caps like MNE.
One possible upside is that the con note holder may be thinking the price is at a bargain basement level so they convert now, ride the price up with news flow then sell some or all and get a free carry on the remainder.
I am still holding and tempted by the price at current levels.