MAG did SEC filing last week to increase authorized shares from 75 to 900 million shares so they can issue new stock to debt holders to pay off the $94m debt puts that can come due in Jan/Feb. As the price drops, they will need to issue more stock, which will further dilute ownership, which will drop the price and cause the need for larger amounts of stock to meet the $94m and so on and so forth in a circular death spiral.

Morninstar released another recent negative report among other things moving their price valuation to 0 from $.40 and estimating MAG burned $89m in cash in the first 9 months of '08 and will burn $12m in the last 3 months, leaving MAG with only $36 mil at calander year-end - not enough to pay the debt if the note holders file a put, hence the move to issue stock.