Hi Ota While not a shareholder I have watched this stock as...

Hi Ota

While not a shareholder I have watched this stock as speculative opportunity for some time. Initially I was concerned with the siginificant dilution from Directors' performance warrants if IPO EBIT based targets were met - they werent and the founders lost a huge bonus on top of their unjustified profits based on the minimal real investment they made in the company prior to its IPO.

Therefore I am suspicious when a brokerage I have never heard of raises a small amount of funds with a large diltuionary impact from undisclosed people without shareholders having an opportunity to participate.

I agree with your concerns. The average 25c entry price all sounds very respectable on the face of it - but it completely ignores the option value inherent in a 5yr right to buy shares at 30c.

For a stock such as MBT, in 5 years this right will either be worthless (if oil stays low) or worth >$2 per share if world econmy recovers and takes oil with it.

Look to see if the resolution you have to vote on includes an option pricing assessment of the warrants - if it does the volatility in this share over the last year should show up the warrant value that you are being "denied" the opportunity to invest in quite clearly. I'm not a securities lawyer so I dont know if there is a requirement for this level of honesty - Accounting standards are certainly lax in that they dont see dilution as a cost to existing shareholders.