WARNING:the directors are to propose for themselves a special...

WARNING:
the directors are to propose for themselves a special Placement.

"Directors of the company have also subscribed to participate in a Placement on similar
terms. The Directors participation is subject to shareholder approval which will be
considered at the company’s Annual General Meeting on 24 November 2009."

This is a special placement.One assumes it is at 11.5c p/s.
What they do not tell us is on what basis. Will it be a max of $15,000 like the SPP? Or will the Directors get special treatment???

If we are scaled back, will the Directors be scaled back also?

We can see that, unlike us l/t sh, the directors of MOS have never supported MOS by becoming meaningful s/h, and many of them do not have a single share in MOS. The CHairman has only a nominal holding of 100,000, and Andy Rigg has 300,000. The rest of the directors have none!

WHY, now that the opportunity to acquire shares at a discount to market, do the directors suddenly feel the need to be provided with a special Placement???


the s/h of MOS are in the dark again.
the small s/h had to sit back and watch their s/h get diluted by the placement of 94m shares at a discounted price of 11.5c (that when market price was 13.5c).

As a sop, then then offer long-standing sh a SPP of max $15,000 (but may well be scaled back).
the max amount of funds to be raised under SPP is $11.2m - so at 11.5c thats 97m shares.
At Sept 2008 there were 8288 s/h - if we each subscribe for $15,000 worth thats $124m !!!
So either MOS expects a low take-up, or we are going to be scaled back heavily.
If the target is 97m shares, thats only 11,700 shares each- or $1,345 each !!!

So the statement by directors that they are looking after the interests of existing s/h, by providing a SPP is simply rubbish.
We are going to be diluted.
Significantly, with the sp dropping back to 12.5c, the takeup of the SPP lessens.

The drop in sp will almost certainly be due to the recipients of the Placement dumping their shares for a profit!

ALL MOS S/H SHOULD WATCH TO SEE IF THE DIRECTORS TRY TO ALLOCATE A PLACEMENT OF SHARES TO THEMSELVES, AT A LEVEL GREATER THAN LONG-TERM S/H ARE ALLOCATED UNDER THE SPP.