I used to have MDT, but I sold out a while back at a loss,...

I used to have MDT, but I sold out a while back at a loss, because I got sick of all the BS that came out of the Manager (MBL).
I regularly phoned them to clarify issues, and got nothing but rubbish responses.

But there is something really curious about this R/I.

MDT has had debt problems for the last several years, right?
So why try and resolve that debt crisis now, when they have to issue equity at 5.5c - and on a 10:3 basis???

If they were ever going to issue equity to reduce debt, why didn't MBL do it when the SP was higher ?????

What is smelly to me is, the related party nature of the sale of MBL interests to EPN.
EPN is only subscribing for $9.5m of new equity.
BUT....BUT....BUT MBL is selling to EPN all of MBL's shareholding in MDT (ie MBL is bailing out),....PLUS MBL is selling its 50% shareholding in the Manager of MDT (again MBL bailing out).

The interesting thing here is at what price is MBL selling its 50% interest in the Manager.
Is it at a reasonable and commercial price??
Because it needs to be.
Because EPN is an Underwriter of this R/I, EPN is highly likely to end up with a huge s/h in MDT, and at a cheap price.
That means that EPN could well get a huge s/h in MDT at half the NTA, without paying a premium.

S/H need to be satisfied that the sale of the Mgt Rights from MBL to EPN bears no relationship with the timing and pricing of the R/I.

Where is the ASA when you need them?


cheers