Giddy,ASOF had the option of taking the IP without the listed...

Giddy,

ASOF had the option of taking the IP without the listed entity. Given that they have made it a condition of the deed seems to indicate that they have either a need or some other reason to retain the listed entity. Given also that there are a lot of costs associated with maintaining a public listing, such a ASX listing fees, share registry etc. If they don't use the public shell for capital raising, it could just be a way in which they can sell down their shareholding, given that they are not going to sell the company any other way. Whatever they recover from this will go a way to reducing their loss.

There is also, as I pointed out in the beginning, the possibility of using the shell, to sell to the highest bidder for another unrelated business. There is always a level of interest in clean shells after they have been cleaned out after administration. Given that MST US is still operating and the IP could be transferred, for little or no consideration, given the market has had a chance to value it, this leaves MST clean and ready to go!

As I said, and you have concurred, MST had to look outside the mainstream for their funding and this started back about 2/3 years ago when they tried to get that notorious pipe funder GEM over the line. I think any questions to the (still existing Directors) would reveal a group, blinded in the headlights, desperately looking for any "ship in the storm" such was the liquidity of MST. They probably should have pulled the plug earlier, but while people such as ASOF are around they can satisfy themselves as to the on-going ability to pay bills etc.

I personally suspect that, despite what some have said here, don't believe that ASOF were actually after the MST IP per se. If you look at ASOF and their funding model and also the other Australian companies that they are associated with, second ranked mining companies, they do not seem to have an specific area of expertise that they invest in. I suspect they just got caught MST, on what could have been a good little earner, and they probably were working on the basis that the directors could come up with someone to take out their debt. Like they did with Harmony. But as they say (with apologies to Don Mclean) "They knew they were out of luck the day the music died"

However, they are committed, subject to the ASX agreeing to re-list the stock to out up $1m for recapitalising the balance sheet, for working capital, and what ever they are paying the unsecured creditors (which is not much). Is this good money after bad? We have to hope that they have some idea of what they are doing!