BRR,Your negative ranting is very infectious indeed. The...

BRR,
Your negative ranting is very infectious indeed. The information you post on the potential 50% equity dilution is only half of the truth. This is what I think may be happening:

(1) I doubt it if the conspiracy theory of taking over the control of MST by the dark forces exist:). No disrespect there Moossy:). I like reading your posts though:)

(2) GEM is a equity financing fund, doing business with the stockbroking coy EEQ. Just like any equity financing & investment funds, they are in the business to make money. In this case it is a warranty $1M dollars free stocks and 10% commission as they go.

(3) The current equity financing deal with GEM is very much a straight forward, boring text book approach with absolutely no innovation what so ever. MST is issuing equity for GEM, not necessary to keep, but to sell on the market to risk suckers like you and me to cover the operation and debts servicing expenses as required:). This is just like the US & the UK are printing money to cover their national debts at the moment:).

(4)The equity dilution you mentioned here would be due to the effect of issuing and selling more shares on the market to new investors (or risk suckers). The company may not need to spend all $20M to commercialize current products.. So it is not all doom & loom to shareholders.

(5) The unknown here is how to stop MD selling, and best manage all the debts, interest bearing and secured convertible notes. You're right in your previous post that secured notes holders (104M notes) are holding the faith of MST. They are the IP owners in the event of winding up. Consider the current financial uncertainty of MST, risk adverse investors may refer to hold those secured convertible notes (MSTGA) as it is the most valuable form of investment in MST at the moment.

(6)The current technical and product development teams under Lee are doing an excellent job, albeit all the monkey business activities going on at the moment. What MST requires is a more commercial focus board of directors, who can create value to share holders, not those white-elephants with name only. We need a financial experienced CFO, not an accountant. The one who can use financial innovation to raise capital without serious dilution of shareholders equity, etc.

So there you are, a few constructive comments from me. At this stage, we shareholders don't have much more to lose anyway. If you are serious about taking charge of your company and make management accountable, then now is the time for a revolution. We can hold the shareholders requisition to call for a company meeting..

Projects financing using debt & equity is my area of expertise, so you will have my full support. I reckon we can come up with a few innovative ideas for financing, attracting investment capital based on sharing future revenue and profits. We can perhaps convince MD to stop the current selling madness, swap his large equity holding for future revenue royalty payments. In this way it will be at everyone interest to ensure the future success of Metalstorm:)... Cheers