Ann: Investor Presentation, page-3

Stupid purchase an all sorts of levels, unless your MFT. Mitchell Family Trust (MFT) takeover by stealth is the only awesome move (but really they should be issuing a Prospectus, very grey area here with ASX listing rules). Lend money to MSV having a charge over all equipment. MSV will fail, Mitchell Family Trust get ownership.

MSV the dilution story:

MSV 2014 to Purchase TBDS

1. Placement $8.5m
2. Entitlement $11.7m

$20.2m @ 3.5c – Issued 533,500,111 shares = a 160% dilution at th time, therefore meaning new investors gain 61.5% of the diluted stock 867,000,222

Now to purchase Nitro they’ll issue a further 57.4% or 495,428,699 shares @ 1.7c, new investors gain 36.36%

But the critical point is since the MFT have been involved they’ve issued a staggering 1,028,928,810 or diluted 308% from the original base for new investors to gain 75% of the stock. The dilution game at its best.

Big gap is any explanation on MVS's working capital requirement for the business (which is not making a profit). Where do they intend to get the money to run the company (more borrowings?). Nitro rigs are all parked up, so most of MSV's current fleet.

Mum and dad investors beware!!! Fully underwritten by a stockbroker, which means any shortfall will go to them, which means they’ll dump the stock at issue to get their money. Issue price will head south very quickly on a heavily diluted stock! 17% shortfall for the $20m raised last year which means they’ll go back to punter saying “come on brother, MSV has got the strategy, now’s a good time to average down” (show me your money!!)……I’m picking a shortfall of somewhere between 30 to as high as 55% (and that’s conservative as compared to other current ASX capital raisings).

Is it honest? Yes. Is it the way to play the game? No. Will they do it? Yes (somehow). Will they get it to work (and I’m talking about MSV and not the Mitchell Family Trust), NO. Will some investors be burnt? Yes. Will MFT end up with MSV for stuff all? YES