ArkivisYes, this is a very good announcement, and as LT...

Arkivis

Yes, this is a very good announcement, and as LT summarised, it only involves minimal dilution in the grand scheme of things - the dilution could have been much much greater...

so now with the capital structure nearly ironed-out (after everything is approved and the deal is done), there appears to be enough funds to get us over the line for handling the consequences of being successful with possibly 3 major outcomes this year - a manufacturing partnership with Colt and/or the MPM-NLWS contract being awarded, and/or the degree of MST involvement in the US Military Force Protection Program - the last 2 appear to be certainties for the company due to the nature of what is needed by the US military in each, and the tech we own patent rights over, and the very real fact of our involvment with them for so long.

(as an aside, many of our patents were stitched up years ago)

but each of the above required a company that could do what it says - before the announcement we still had real funding concerns because of the many convertible instruments that were scaring off potential investors due the real threat of massive dilution - well virtually all of that threat will disappear once this deal is put into action, and with the award of one or more of the above, MST could find itself finally able to ask for debt financing in the future, once solid commercial contracts have been signed off on, which may be all that a bank needs to see for lending future funds, so future CRs via new equity could very possibly be much less needed - we hope, of course

otherwise look at the current MC - floating around $6 million odd or so - really quite silly when you try to value the intellectual property and what it could afford in revenue when properly exploited --- so just do a little dreamy maths -- say MST partners up with Colt and starts producing Mauls -- now Colt also supply the US military with M16s and a variety of other weapons that the Maul can attach to --- try putting an annual revenue to MST on that whole arrangment, and we start looking at potentially 100s of millions per annum, especially if the global market is able to access Colt-MST weapons -- then the MC starts looking a lot higher, the SP 1,000s of % higher than what it is now ...

then try some guesstimates on the value of the US military contracts -- the biggy for me is the Force Protection Program -- could be worth many many millions over quite a few years

look at Canada's interest in upgrading their military and their stated desire to incorporate MST wherever they can...

the military momentum just keeps on picking up once the US military start the ball rolling with one serious commercial contract - it simply starts to get a little mind boggling...

my point is that even with say 10 billion odd shares, you start moving up and beyond an SP of $0.10 when the above scenarios start to become reality

when you consider we are currently at $0.001/0.002, then being in now only results in profits measured in the 100s of % ... 0.001 to 0.002 = 100% and keep doubling after that -- it's that straight forward...

the risk seems to be not being in the stock imo

this announcement was more than most long termers could have imagined, and it will achieve extraordinary profits for many (if they finalise it), especially for those who took the risk to buy when the the SP was on the mat

the above are just some quick thoughts, so DYOR



good luck