Micro Imaging Technology Inc (MMTC)

[diy_investor]

I have a theory on ongoing volume of trading without any substantial news, The company's ongoing financial needs may be through the securities purchase agreement that Tony Frank has with the company. Here is the beneficial ownership report filed by Frank to identify this agreement dated December 15, 2008. It was Frank's 27th amendment. The 28th (last) amendment filed February 27, 2009 has the same statement.

http://sec.gov/Archives/edgar/data/808015/000114420409002460/v137374_sc13d-a.htm

On December 15, 2008, Mr. Frank entered into a Securities Purchase Agreement with the Company to purchase $300,000 in convertible debentures. The debentures bear 10% annual interest and mature on the third anniversary of the final closing date on which the final debentures, of up to an additional $2.2 million in debentures, are sold as determined by the Placement Agent. The debentures are convertible at any time at the option of the holder into the Company’s common stock at a fair market value of 80% of the lowest closing bid price per share for the 20 trading days immediately preceding conversion. The debentures are also redeemable by the Company: 1) if before six months at 120% of the principal value, plus interest; or 2) if after six months, at 131% of principal, plus interest.

By the end of the month, we should know if additional shares have been issued since the last filing. The company's 10-K filing is due.