I think we could expect a surprise for the commercialisation costs for MAUL, where we don't see "massive dilution beyond Luxinvest" - why? - because Colt look like they will be the ones who will set up the manufacturing of Maul, and they have ready access to finance - they also want to be the ones selling the product, which makes a lot of sense given their long history and market acceptance -- so, let them bear most of the manufacturing set-up costs via their access to cash - this could in turn be debt financing for MST, or we simply cut them a good deal on what they take away from every Maul sale - if it were to be a licensing arrangment, often the licensee pays a substantial upfront fee - again, this could be directly used for manufacturing set-up costs, which would after all, be quite fixed and stable -- my point is, MST will be in the drivers seat given the demand by Colt to have a lot of involvment with the product, and the general ballooning demand for the product in the market - those factors mean we won't have to be bending over and giving away massive amounts of equity moving forward, where we should expect to see at some time not too far away, bankers also willing to open their doors - and then there is also the corporate bond market to consider for MST raising cash without needing to issue shares -- the financing choices will simply open up to the company in due course..
good luck
MST Price at posting:
0.1¢ Sentiment: ST Buy Disclosure: Held
