KK, L2, Stockrules, I was criticised, even temporarily suspended, for raising the same concerns. I am now far more careful about my choice of words suffice to say that MAE management has done nothing to inspire confidence in the investment community. Even Pattersons who extracted a management fee of $3M for the last placement has downgraded the stock. L2 (a very smart man) keeps saying trust management as they will deliver. But will they? Let's assume a worse case scenario and run out of cash (which is possible scenario) and can't raise the $ to continue as a commercially sound, solvent company. What then? Is there also a possibility Fortris is making noises and wants back its $22M before the date of maturity in late 2009 due to lack of progress, hence sale of OK (assuming they find a buyer)?
Here's a scenario (being devils advocate). The directors have the means to pay for the options about to expire in a few weeeks and decide to bail out. The options are exercised at 30c, then they offload their holdings on the market at 55-60c and have doubled their money. Why is this not a realistic outcome? Let's forget possible legal ramifications for now.
You really have to wonder what the truth is. I seriously hope that my complaint to ASIC coupled with KK's complaint to ASX forces this mob to finally tell the truth. My own gut feeling is that things aren't travelling too well. I hope the ensuing facts prove me wrong.
MAE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
