Gday BRR, another poster on ss called mosaic posted this, it...

Gday BRR, another poster on ss called mosaic posted this, it fits with what you are saying, I will comment at the end of my post!
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According to the announcement GEM will lend the shares (= someone is going to short-sell the shares) to (help?) fund the facility.

My reading is that the shares issued in each tranche will be sold into the market = share price is heading lower(?). Who will borrow and sell the shares, and who will buy these shares?

If there is no corporate play at work, and it purely a financing play for GEM, then the share price will likely be hammered.

A corporate play may be on, and the deal structure may be more about avoiding the 20% ownership takeover trigger. Maybe some country want MST technology (very cheaply?)?

Irrespective of the rationale behind the deal, my guess is that the share price will head south over the coming months.

O'Dwyer is selling doesn't look good. No doubt we will see shortly if dumped into yesterday's volume.

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The Tranche One shares will be issued to EEQ on execution of the definitive agreements. EEQ has agreed to transfer the shares to GEM. The Tranche One options will be issued directly to GEM. Tranche One will proceed without shareholder approval because it is not required under Listing Rule 7.1 limit. However shareholder approval will be sought for the remainder of the facility and associated share and option based fees.

The issue of securities more than 3 months after shareholder approval will require a waiver to listing rule 7.3, which the Company will be applying for but cannot guarantee it will obtain. If the waiver is not granted, the Company will be required to hold further shareholder meetings to gain further approvals from time to time.

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I think this part of mosaics post is the critical bit?
This is in my opinion a corporate play of sorts, to get to a certain percentage ownership of MST, but it sure as hell is way more than 20%.

"A corporate play may be on, and the deal structure may be more about avoiding the 20% ownership takeover trigger. Maybe some country want MST technology (very cheaply?)?"

This is what it is all about, as was the AFHL deal I reckon, it was all part of the same game plan in my opinion,to get "CONTROL", not necessarily full ownership of the company, notice how EEQ will pass on the shares they get to GEM, they are headquartered in are in New York, funny about that!

And yes EEQ may get to have a seat on the Metalstorm board, but they will be acting in GEM's interest, not EEQ's, The UK part of the equasion is just another phurphy to throw people off the track, that's all, just like the AFHL deal was set up, look mum no hands! IMHO.

It is well worth remembering how Harmony has agreed with this funding and were happy with it,why would that be so? they could have quite easily gained everything the company (mst) owned (IP etc) simply by sending them into administration, there is much more at play here than we can see,I just wish I knew what Harmony did? the only real problem I have is with MOD still selling his holding down, if that is what he continues to do? the next shareholder top 20 will tell, MOD did say he was going to sell half his holdings some time back now, a figure which I believe he has now passed, whether he continues to sell in the future is the burning question.