This loan is, it would seem to me, to be a bit of a smoke screen for temporarily improving the liquidity of the company so it looks attractive. The seemingly low rate of interest of 3.25% is almost irrelevant. They will get their money back in spades, probably very quickly.
Explanation: Assure lends 17.5 mil to MST. Price goes up to .06c+ (I expect it will not too long after this deal is secured - there is plenty of incentive for Assure (or someone) to push it up by a few strategic purchases. (The market will do most of it once the ball starts rolling). Assure get their options. They pay 17.5 mil to MST. MST repays the loan.
Hey Presto!
Assure is now a major major shareholder. MST have their $34mil.
What the price will end up eventually is pure guesswork. Say it goes up to 15c or 20c. (A bit of pumping here too once a sale or two is announced?). Assure sells maybe 30 or 40% of their holdings. Klump! They now have still a major shareholding probably around 50% and they have got it for FREE.
Deal of the decade mate!
or am I just a cynical B?
NOTE: There is no factual basis for this reasoning - it is all opinion and supposition.
My opinion is for us to hang on to our shares at the moment. Whilst it won't be the deal of the decade for us, we'll pick up a few crumbs in the machinations, maybe even a slice or two. If you are a big loser from way back, maybe it is time to average down now whilst it is at .03. (5mil shares bought today and the price did not drop below .03 - somebody else seems to have a similar opinion).
Of course if this deal does not go through on Friday, we are all going to be gurgling whilst the mess gets sorted out - but I am betting Mr Rivero (whoever he is) will not let this one slip through his fingers. I wouldn't!
Good luck guys & gals.
This loan is, it would seem to me, to be a bit of a smoke screen...
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