Schiffhead,Its confusing isn't it. I suspect you are mixing up...

Schiffhead,

Its confusing isn't it. I suspect you are mixing up "maturing" with "converting". The notes don't mature for 3 years assuming the extension, but they can convert any time they want. They can convert now if they want to but why would they if shareholders can be pushed into agreeing to giving them better terms for no apparent reason.

When the notes mature the company is supposed to pay them out at face value. Obviously the company won't be doing that because it doesn't have the funds to do so thus this new party is eager to agree to an extension. This extension is as much for their benefit as anybody.

The day after shareholders approve this change in conversion rate they could start dumping shares to drive the price down to 0.001 and keep it there for a couple of days. It would only take $117k of stock to wipe out all buyers including all the ones at .001. Given the panic this would create maybe a little less as buyers disappeared. A few dollars to keep it there for a few days and shazzzzam, a VWAP of 0.001.

Interestingly these guys are getting $250k of free shares coutasy of shareholders via this fee that we apparently have agreed to. This gives them 125 million shares to do whatever they like with. Interesting.

This would result in the issuance of about 13 billion new shares to them. Even if the RI is fully subscribed (snowflakes chance in hell of that at the moment) then there will be 4.45b shares owned by existing shareholders. That number of shares on issue will grow to 17.45b if those notes are converted at 0.001. That would give them 75% of the total equity of the company.

If on the other hand shareholders decide not to put more money in then the current 2.225b shares on issue would grow to 15.225b which would give them 85% ownership of the company.

Oh, and I'm forgetting that they will also own an extra 125 mil shares discussed above plus another 500 mil or so from their purported $1m placement. So the percentage they have keep going higher.

Now if I remember correctly they can launch a takeover and go to compulsory acquisition as soon as they get 90% of the shares. Doesn't look like they would need to spend very much money to own 100% of MST.

Now I'm not into conspiracy theories but this doesn't look good. I can't say that this is what they intend to do but it certainly looks very possible. Shareholders are being asked to put in extra cash and just after they put it in they are being asked to agree to terms that seem to make it possible (read easy) for the entire company to be taken over for next to nothing.

Tell me why on earth shareholders should or would agree to this new proposal ?

People on this board have been talking of and worried about a opportunistic cheap takeover for ever. At least in the past there were enough holders to potential block it. Doesn't this one proposal change everything ?