Ann: Change in substantial holding, page-40

Hi nursery,

With the utmost respect for your opinion, and indeed for all opinions on this forum, whether positive or negative, here are my thoughts in response to your request for ideas:

1. I agree.
2. I agree.
3. Nothing more than thousands of other companies throughout the world have also done. In fact there are stacks of companies that are way more complicated, not to mention the thousands of “tax based” companies that are formed every year to avoid taxes (something GS has not done by the way). Complicated company arrangements are the joy of M&A teams etc. and are very much an accepted and normal part of the game.
4. Correct. They also spun off EDE from TAS. Indeed in some ways, TAS is a spin off from Noble (nothing sinister here, just the normal process of taking a private company public by listing it on the ASX).
5. GS realised of course very early on that the world of CNT’s is a vastly different one from that of mining. Indeed, once EdenCrete was finally developed, he knew exactly where both TAS’s and EDE’s future’s lay, particularly in view of the gigantic size of the global concrete market and the lucrative and beckoning US infrastructure sector.
6. At the moment the entire focus is on EdenCrete (later EdenPlast). As far as know there were no exploration activities conducted at all during the last two quarters of 2017. The only way that TAS will further their mining interests is through a JV with a major mining company, where TAS has a “free carry” interest. Indeed, I believe that discussions in this direction have already been held with a potential joint venture partner for all of TAS’s SA tenements. GS is definitely not afflicted with "gold fever" except perhaps when it comes to EdenCrete and EdenPlast.
7. EdenCrete will be providing funds to expand the production at Colorado and Georgia to ensure that both EdenCrete and EdenPlast are commercially successful i.e. I strongly doubt that any funds will be directed towards prospecting in the short to medium term, if at all. See also point 6.
8. The company arrangement is not a hindrance to fundraising by EDE. If it was, GS would not have been able to undertake and successfully conclude the two most recent and quite significant private placements that he has. See point 3.
9. GS is well aware of the need to avoid any further dilutions for TAS and EDE for both himself and his family, the TAS, EDE and EdenCrete employees, as well as the major and long suffering minor EDE and TAS shareholders.
10. This is a possibility but IMHO highly unlikely. Having said this, GS does see the big picture and despite speculation to the contrary, he will do everything in his power to ensure that both TAS and EDE are sufficiently well funded, as well as soundly and strategically aligned, to ensure EdenCrete, EdenPlast etc. all realise their huge potential. See also point 9.
11. Of course they want to have the SP of EDE as high as possible. This is always important, in particular for EDE who has quite a number of employees with option packages as part of their salaries.
12. Of course they are weighing up all options, including a whole host of options that you have not listed here.
13. As part of one of their options, a listing on US stock market is highly advantageous when trying to attract major companies to take up significant shareholdings (and/or attract funding). GS is very conscious of the need to bolster EDE’s top 20 shareholder list in order to reduce the volatility in the EDE SP (and thus TAS). The majority of US investors will only come on board when EdenCrete is making significant sales and also when EDE is listed in the US. I strongly doubt that GS will be interested in any sort of a takeover in the short to medium term, unless the offer is for well over A$1 billion.

Exactly which number of options will be taken is very open. I believe that GS has a few different ways to go, all of which are positive. It is all just a matter of getting the absolutely best deal to ensure success without taking too much risk or giving away too much of the company unnecessarily.

Please do not suggest that a pump and dump is motivated by GS. If there is any market manipulation going on, it is being done by brokers or investors who constantly take advantage of the “casino” style of trading that is allowed to flourish on the ASX. Which is of course is also part of the reason why the EDE SP fell so far in the second half of 2017.

The other reasons why the SP fell so far was the fact that investors bought up big on infrastructure stocks all over the world, after believing that Donald Trump would quickly deliver on his infrastructure spending bill election night promise on November 8th 2016 (unfortunately I also fell victim to his hype which was televised live on CNN at 3 am German time). This hype helped create a speculative bubble and sent the EDE SP far higher than it should have been in the first place (the bigger they are the harder they fall!). The major factors however, that contributed to the demise of the EDE SP, were that EdenCrete’s production became delayed by nearly 6 months and the GDOT sat on their hands for almost the entire of 2017. These two major negative factors resulted in a severe knock-on effect i.e. a 12 month “significant sales results” delay. Once it became apparent that the EdenCrete express was starting to experience its very first real setbacks (new territory for most investors, including me), the speculative bubble burst and the EDE SP took a real tumble in the second half of 2017. Having said all of this, EDE with EdenCrete is far far better placed than it was 12 months ago. Therefore it is time to forget about 2017. It is January 2018 when the story really begins!

Summing up, you can bet your bottom dollar that something is in the wind. You can also bet that this year will be very different to last year.

Best regards and thanks again for taking the time out to give us the benefits of your experience as well as your personal thoughts.

MB


Please Note. Readers must do their own research before making any investment decisions. All posts from me are my own personal opinion und are not intended as a recommendation to buy, sell or hold.