I like to think MST management are serving the interests of...

I like to think MST management are serving the interests of shareholders.

If they are, a quick play into administration could be a long term strategy to maximize shareholders' interests.

Luxinvest own about 437.5m shares or about 7.68%. They entered into an agreement that they could not fulfill and which jeopardized the viability of the company if they could not deliver. Management knew this.

Management also knows the long term prospects of the technology and hence company (if it could survives long enough) is excellent.

The colt contract also would normally give management some breathing room by supplying short term funding.

Therefore, placing Metal Storm into administration so rapidly after the Luxinvest/Asof deal collapses makes no sense unless it can be used to punish Luxinvest for failure to honor the deal.

Administration could therefore serve a purpose.

1. Could it be a way of removing Luxinvest from the share register to either force them to honour the deal or remove them from the registry if they can't. (I do not know if they can do the latter - does anyone else know?)

2. It also could create an auction for the IP. Management knows the IP is very valuable and on the cusp of delivering. May be it can create a bidding war to find out what the market price of the IP.

3. It could flush out other prospective investors.

I like to think management has known about this possibility for a while and are now enacting their contingency plan.

Lets hope management now prove their mettle and have the interests of the company and shareholders at heart.

Selling the IP for $2.5m would be a tragedy, both for shareholders and management. Management knows the true worth of this company. Lets hope they fulfill their mandate.

PT