I posted this on another site in response to the recent spp ann....

I posted this on another site in response to the recent spp ann. Hope it helps some new traders make sense of what is happening.

There is not going to be 90 million new shares on issue (however there will be 90 mill new shares on the market that were not available on market before.) The new amount of shares on issue will be 22.5 million (90million max issued from SPP -67.5million existing shares from escrow.) This is a placement of shares on the market, and basic economics (supply and demand) means the outcome will not be beneficial for us holders.

I dont understand why they need to sell the escrowed shares, surely keeping them on the books would be a better idea? Do they need the cash that badly, surely the revenue which they claimed they would be receiving this financial year (as we are in the 2007-08) from Indonesia and Vietnam should be more than enough, it should be just under 2 mill a month IF everything is as they say in the revenue forecasts this year.

It is possible that a large shareholder could come in as someone was suggesting, but if MCL was expecting this surely they would do a private placement directly with the institution or individual, as putting them on market allows anyone to get their hands on them.

For me this is the first dissapointing thing MCL has done, my other posts although might be negative in senitment because I was asking scrutinising questions I never had any criticism of how management was acting. However with this SPP I feel as if something is amiss, they shouldnt need to do it as cash should be available as I said from rev from Viet and Indo, not only that they promised no dilution in regards to acquisitions only to give dilution in with the expansion into China.