MHL is a total spec with some potentially good tenements. There are many others like it.
I have been unhappy with MHL since they announced the Medina/Sentry deal last year. It may be two years before there is any drilling in K-stan because we are dealing with a virtual oiler rather than an actual oil company.
I am still holding in the hope of getting something out of k-stan.
I do not feel so negative about the capital raising, although it does have some negatives. I agree that the management is continuing to do mates deals, which is a bad sign, in particular the 250 million options to MCL rather to existing shareholders is a negative. Management options should be performance based and non-tradeable (and may be should be larger to better align their interests with shareholders). The exercise price of 2.5 cents is very low relative to its current price. I am sure you can suggest further improvements.
However, current shareholders are to get cheap options which can be traded while at the same time raising capital for further MHL deals. We are dependent on management doing good deals on our behalf and they will have the needed cash. As noted by others some capital had to be raised or they would have been insolvent.
Trusting management is going to be hard. I am relying on their ability to make good deals for all, and will hang in for a while as my entry cost is relatively low.
loki
MHL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
