changes to note

Dear all,
After watching this stock with interest over the many years, I regret to inform you that, IMO, your stocks are all but worthless now!
The document to extend the Notes grants the Noteholders the ability to select between 2 types of notes, Secured, which earn no interest but come with Options attached, and Interest Bearing Notes.
Here is the catch:
Each Option entitles the holder to one share at a price of $0.001 (see extract below)

"Schedule 4
New Option Terms
If the Resolution becomes effective, Options will be issued by Metal Storm Limited (Company) on the basis of 5 options for every 7 Secured Notes held on a date to be
advised at no additional consideration (New Options).
(a) Each New Option entitles the holder to subscribe for one fully paid ordinary share in the capital of the Company (Share) upon exercise of the New Option and payment of the Exercise Price (defined below).
(b) Each New Option is exercisable at $0.001 (Exercise Price), payable in full on exercise of the New Option."

Firstly, these options are $0.035 cents in the money (assuming last SP of $0.036).

Nest, there are 143,268,195 Con Notes on issue, Harmony holds 97,902,659 and has stated (Section 5) that it will take Secured Notes. At the ratio of 5 options for 7 Notes, they will get 69,930,470 options, which for a grand total of $69,930.47, they can convert to shares. This is more than 10% of the current issued capital alone (629.071M shares)

The SPP allows the company to raise $2M at 20% disc to VWAP which could be as much as 69,444,444 shares assuming a VWAP of $0.036, 80% being $0.029.

Post dilution and conversion of options, there could be as many as 698.5M shares on issue, and the Company will still owe the money due on the CN with no commercial production forecast until 18 months (as per the CN Documentation).

This board has really messed this up, and that is keeping this comment clean and respectible.