the rorts continue

clearly the Board of MST excels at one thing - giving away the company for nothing

the latest announcement seeking approval of resolutions for alotting shares to Malco and Ben O'Dwyer is just another example

both Malco and BOD lent money to the company with no interest payable

both Malco and BOD have requested to be paid shares - fine, I am OK with that, but where does this Board get off when they start giving away free Options?

Malco to get 112,500,000 Options for NIL consideration

BOD to get 48,750,000 Options for NIL consideration

the reasoning given by the Board is that provision of the Options matches the terms of the recent Rights Issue - but they were shareholders' rights, not rights to be given to every creditor who walks in the door with a small bag of cash

if the loans from Malco and BOD were truly commercial and at-arms-length, then both creditors would have sought interest terms when lending their funds - but strangely they did not - and that is very suspect and unusual to say the least

one can only conclude that the Board of MST entered into a side letter or verbally agreed with each of Malco and BOD to obtain for them consideration for the loans better than simply interest terms, and instead some sweet heart deal like millions of free Options

there is absolutely no business logic or reasoning or clear justification for giving Malco and BOD Options based on what a recent Rights Issue may have given to long suffering shareholders

again this Board is excelling at diluting every shareholder's stake in our company

I believe both loans were not entered into on strictly commercial terms that were at arms length - clearly the absence of terms concerning interest payments suggests that those loans had further understandings attached to them that were not contained in the loan documentation

this is a disgrace and both resolutions in so far as they concern the alottment of Options should be voted down

as the original loans did not prescribe for any interest payments, then Malco and BOD deserve no interest, let alone free Options that appear to be taking the place of interest payments that our company is under no legal obligation to pay

had the loan documentation given an entitlement to each of the creditors to receive free Options in lieu of interest payments, then that would be another story - but as there is no mention of any legal obligation to give either Malco or BOD these Options, then the company should be prevented from further diluting shareholder value by giving away Options that it is under no legal obligation to provide to these creditors

this Board must think we shareholders are twits

the Board of MST needs to get its act together and stop treating shareholders like morons

good luck