They needed to make a deal ASAP! there was alot of frustrated or impatient holders from lack of transparency "fluffy" Announcements.
Its a tough game, but when you have had deals fall over in the past and the Management is paying them selves huge amounts of cash with no revenue on the books one could see prior to this announcement that the need to regain trust back from holders because the pressure was on, big time!
If you invested 10million in any company for it to loose 40% value in a few months with no transparency you would be pissed off. This is what happened with the 6.5c CR in march (SP at time was 8c).
Now after this AGM if voted upon this investment of 10Mill can bail out of the company completely and hopefully get their money back, or stay in if MGC have gained their trust back.
Its the way I see it.
Back to the question "Who would sign an agreement of this magnitude where they are committed to lose money?"
They won't loose any money, the share holders could possibly see 20 mill of revenue onto the books, how much profit over that time, I am assuming 3-4 mill if the whole order is filled, which wouldn't put the company into operating at a profit for the time being.
Its a start if it can stick and will regain trust for patient holders.
best of luck.
MXC Price at posting:
7.6¢ Sentiment: Hold Disclosure: Not Held
