letter to t o'dwyer, chairman

Copy of a letter sent to T O'Dywer, Chairman MST

I am writing to express my discomfort at the current policy of the board continuing to have special issues of shares to private investors on such extremely advantageous terms that it almost inevitably leads to market manipulation of the share price to the severe detriment of current shareholders. I have been prompted to write to you by todays announcement of another "Special Issue" on terms which allow retrospective calculation of the price of the new issues.

Many of your long term shareholders have continued to support the company through all its ups and downs because they believe in the goals of the company and it's technical ability. Whilst we all understand the financial pressure that the company has been under, the public expectation based on information provided by your board was that the company had sufficient funds able to be drawn from GEM to continue development and operations for up to 24 months.

Why then does the company continue to offer ever more favourable deals to private investors which are significantly better for the "special" investors than GEM? We were led to believe that, whilst the company was seeking other sources of finance, these would be on better terms for the company than the GEM deal.

I believe a full public explanation is due to all shareholders, and in addition a public announcement as to whether the company will continue to make share issues on a similar basis and whether advantageous issues of shares such as these will be made available to the current shareholders in a public issue.