Ann: Shareholder Update , page-95

SP3

"Samwiise, name one penny stock that meets all of it’s deadlines and promises" - Point taken.

"9 months is acceptable considering the goal posts have continuously moved" - I disagree.

If I knew the goal posts were being continually moved I therefore WOULD NOT use phrases such as "Imminent", "Within 5 days", "Comming in tranches" in ASX released announcements...


SP3. Please do not try and paint me as some sort of naïve investor who has no clue, re your comment [but everything changed because of the ALDP process “in case you hadn’t noticed”]

I don’t think there’s been a single ESI shareholder over the past 13 months who HASN’T noticed what has transpired regarding Monash.

Obviously as a present holder, I wish for nothing more than for this company to succeed into the future and pull this off in a company making type of way. Of course I want that! And with ARUP and McDow on board combined with a likely successful ALDP scenario with likely large amounts of Govt funding poised for ESI and with a completed and viable DFT, there is every chance of this!

But the ongoing lack of payment(s) from Monash have been nothing but a disappointment and an embaressment (IN MY VIEW) and SHOULD BE INDEPENDENT OF ANY ALDP FUNDING TIMEFRAMES (IN MY VIEW).

And if they are not independent of any ALDP funding timeframes, then ASX announcements should reflect this and the company should not be making announcements that they do not follow through on over several months. As in, telling investors one thing, then doing the complete opposite and not following through.

SP3, Let’s examine some of the broken promises and missed deadlines over the past 13months:

“The Company has been evaluating funding options to accelerate the Design for Tender process and secure access to working capital for on-going development and operations [through to end 2012/early 2013] and is seeking Shareholder approval to raise $4.0 million (before expenses) by making a placement to Monash Capital Group Pty Ltd (Monash Capital) for the issue of 300 million new Shares and 300 million new listed Options as announced by the Company on 15 March 2012.”
(from 22nd March 2012 announcement ‘Notice of general meeting/ proxy form’, page 5)

“All of the Shares and Options will be allotted to Monash Capital or its nominated entity or entities upon receipt of the subscription of the $4.0 million [and is expected within 5 business days following Shareholder approval] and [in any event no later than 26th July 2012].”
(from 22nd March 2012 announcement ‘Notice of general meeting/ proxy form’, page 7


“Resolution 4 (Approval for the issue of up to 300 million Shares at 1.3¢ and 300 million listed Options for nil consideration to Monash Capital) will proceed with the Directors’ recommendation that shareholders vote in favour of Resolution 4.”
(from 13th April 2012 announcement ‘General meeting resolutions update, page 1)


“Approve issue of 300 mil. Shares 300 mil. Options - Passed on a show of hands”
(from 27th April 2012 announcement ‘results of meeting’, page 1).


“Capital Raising: [The ‘Monash’ transaction is expected to conclude in coming weeks], paving the way for completion of the DFT, and future project funding”
(from 15th June 2012 announcement ‘Shareholders Update June 2012’, page 1)

“I wish to report to shareholders that documents received yesterday from Monash Capital Group (Monash) confirm the imminent completion (there's that word again, 'IMMINENT'...) of their financing commitment to ECT. Monash has advised ECT, and ECT has sighted documentary evidence to confirm, that a formal banking process is in place, which will provide for the share placement monies, the provision of funding for the construction and operation of the Coldry Demonstration Facility and funding for the Matmor Pilot Plant development. [It is expected that the funds will be made available to ECT within the next two weeks]”
(from 15th June 2012 announcement ‘Shareholders Update June 2012’, page 1)

Status of Monash Capital Share Placement Settlement:
“The ‘Monash Capital transaction’ approved under resolution 4 at the general meeting on 27 April 2012 has experienced some delays. In correspondence received from Monash Capital on 18 July 2012, the Company has been advised that Monash Capital [remains confident that the transaction can be finalised by 26 July 2012]. In the event there are delays beyond 26 July 2012, Monash Capital has proposed a contingency program comprising the issuance of up to 300,000,000 Fully Paid Ordinary Shares (ESI) at $0.02, with 300,000,000 Options (ESIO). If the revised program is required and endorsed by the Board, funds would be provided to the Company as a Convertible Loan subject to Shareholder approval at an EGM. In the correspondence Mr. Youren states “We are still very committed to the ECT investment and are including the company in a number of additional projects that we have underway. We can confirm that the funding that we have organised in conjunction with our partners IMFA includes funds for the development of Coldry, Matmor and EL5119.”
(from 19th July 2012 announcement ‘Shareholder Update – Capital raising’, page 1)

Status of Monash Capital Share Placement Settlement
“The Company has received $500,000 to date in part satisfaction of the $4 million placement as approved at the General Meeting on 27 April 2012. The Directors of ECT have received correspondence from Monash Capital advising that the balance of the placement will be delayed beyond todays ‘resolution 4’ deadline. Therefore the timeframe to settle the remaining balance of the $4 million placement under the
terms of resolution 4 will expire at 5pm today, triggering the contingency offer outlined in the announcement on 19 July 2012.”
(from 26th July 2012 announcement ‘Shareholder update – capital raising’, page 1)


“I need to advise shareholders that this morning we have requested a trading halt in response to a letter received this morning from Monash Capital Group. In this letter, [they have confirmed the availability of the first tranche of funding is available with in the next week]. However, they have sought to change some of the terms of the placement agreement, and some of these are material and requiring due consideration by the Board. This will take the Board some time to consider and respond to Monash. However, we will proceed with the AGM agenda as it stands, including resolution 6, which seeks approval for the placement of shares to Monash on the terms detailed in the explanatory memorandum that formed part of the Notice of Meeting.”
(from 29th November 2012 announcement ‘Chairman’s address - 2012 annual GM’, page 1)


“As of today’s date, Monash has not delivered any further placement monies [however we are in receipt of a letter from them which states that the first tranche of $1.0m will be delivered to us during next week, and further tranches of $1.0m each will be delivered each fortnight until full settlement of the $6.0m is made.]" (WHAT HAPPENED TO THIS??) "I can advise that the wholesale funding provider to Monash has confirmed the funding arrangements are proceeding and are unconditional. Whilst the actual delivery of funds to ECT has been much slower than expected, receipt of the letter from Monash this week, together with the Board’s knowledge of the financial instrument being used by Monash to deliver funds to ECT, we remain confident that Monash will fully complete the transaction. Furthermore, we fully expect that Monash will be in a position to fulfil its commitment to provide substantial project financing for the Coldry CDP within the timeframe required.”
(from 29th November 2012 announcemnet ‘Chairman’s address – 2012 annual GM’, page 2)


“The Board fully appreciates the concern and anxiety expressed by Shareholders over recent months regarding the delayed settlement by Monash however we trust that, with the renewed confidence provided by the Monash letter, together with Monash’s re-affirmation of project financing for the Coldry CDP and other projects, it was in the Company’s best interests to extend co-operation with Monash and accept the delayed settlement.”
(from 29th November 2012 announcement ‘Chairman’s address – 2012 annual GM’, page 3)

“(b) The proposed issue of securities to Monash Capital in Resolution 6 must be completed by 13 February 2013, 3 months after the date of the AGM. [The expiry date is to be revised to 28 February 2013.]”
(from 29th November 2012 announcement ‘Chairman’s address – 2012 annual GM’, page 6)

Mr Michael Davies, Executive Chairman said “We appreciate the patience of our shareholders as we work with Monash Capital on our longer-term funding to ensure the best interests of both parties are accommodated. In the meantime, these interim funding measures will allow us to maintain the momentum of the Commercial Demonstration Plant (CDP) delivery program, and ongoing operational funding”

“Status of Monash Capital Share Placement Settlement:
The ‘Monash Capital’ funding program approved under Resolution 6 at the Annual General Meeting on
29 November 2012 [is progressing.] The Company will make a further announcement as outcomes are reached”
(from 4th February 2013 announcement ‘Shareholder update: Capital raising activities’, page 1)


“The Company expects to receive $6m from Monash Capital Group in settlement of the Share Placement Agreement [in tranches over the period March to May 2013.] The terms of this Share Placement Agreement were approved by Shareholders at the 29 November 2012 Annual General Meeting.”
(From 28th February 2013 announcement ‘Half Yearly Report and Accounts’, page 17)


“Key Points:
ECT remains productively engaged with Monash in regard to both equity investment and investment in production facilities, Resolution 6 of the 2012 AGM expired COB yesterday without execution by Monash. [Monash advises it is on track to close out funding arrangements imminently]” (There's that word again, 'imminently')
&
“Just prior to the commencement of the AGM, ECT received a letter from Monash stating the first tranche of funding could be delivered within a week, however the letter also sought to make those funds conditional on the acceptance of terms that differed from those put to shareholders under
Resolution 6. The Board advised shareholders that it would need time to consider the revised offer and has since worked with Monash to come to agreement, mindful of the approval window for Resolution 6 expiring on 28 February 2013 (yesterday). Despite extensive endeavours to resolve matters with Monash by yesterday’s expiry, [several key matters remain outstanding]” (Why are they still outstanding? How long do matters need to have a status of 'still progressing')
(From 1st March 2013 announcement ‘Shareholder Update – Capital Management Activities’, page 1)



Clearly there's been a lot of missed deadlines and broken promises and hence why the share price is closing at .008