CJ and LTI, I agree with your sentiments concerning TOD and our...

CJ and LTI, I agree with your sentiments concerning TOD and our directors generally, Lee especially. They could have thrown in the towel many times, but have not. Correspondence I've had with Lee over a period of time tells me he is here for the long haul, and is also confident that MST has a great future. Might not be obvious right now, but there it is. Also agree with the suspect nature of these out-of-the-blue posts preaching the end of the world as we know it, at least for MST.

So onto the rights issue. First, I don't buy into the Machiavellian take-over theories, particularly as regards manipulating the price down in order to convert. Seems a little convoluted, not to mention potentially fraudulent. Easier ways to do it, especially if MST is worth the effort, which it presumably it is if they would go to such lengths to concoct a scheme in order to launch a full bid. Could be wrong on both counts. Time will tell.

Call me naive, but ultimately I have faith that TOD would NOT allow such a thing to happen if it involved royally screwing his long-standing, long-suffering yet loyal shareholders.

No, of more interest to me is the amount being sought to be raised - $6.6 million. This is a significant chunk of change for MST. The 2010 rights issue was for $3.1 million. The 2009 SPP was for $2 million. So what has changed to give the company the confidence, (some may say the gall), to go after such a large chunk of money?

Arguably, it will never fly without a significant material announcement, or two, to give it wings. Of course, they can't withold material announcements until it suits them to release them, but they can anticipate making such an announcement on successful finalisation of a deal that is being negotiated to a pre-determined timetable.

Once again a potential deal with Colt has been on the table for some months now. We can only presume that it is still 'live' otherwise they would have told us Colt were not proceeding. That said, any such deal announced between now and closure of the SPP would be exactly the catalyst required to ensure a positive, if not overwhelming response to the SPP. It would also dove-tail nicely with Lind's stated investment philosophy of event-driven opportunities.

Anyway, these are my thoughts, for what they are worth.

I remain optmistic we have an interesting few weeks ahead.