Ann: Shareholder Update India Project and Bond Strategy, page-31

My interpretation of this bond structure.

The 350m escrowed shares are there as the initial bond to allow us to get moving, the Aust government bond option might take up to 3 months from signing the RCA under normal circumstances but unfortunately we have an election coming up which may and most probably would delay that option.

A bank guarantee I assume would be costly so that would have to be weighed up against funds coming in via the ELF. After this financial services royal commission the banks might just be looking for alternative business, who knows.

The cash option is obviously money raised through the loan repayments of the ELF holders.

From my understanding the bond will work like this, regardless of where the security comes from.

As an example let’s assume some loans from the ELF are paid out after the RCA is signed and the company feels they have a spare $1m. That $1m cash could then be locked up into the bond releasing 100m shares to be returned to ECT and struck of the register. As more loans are paid off then the same can repeat until the project partners are satisfied, the end result may be any mix as well. ie government bond-shares-cash.

Perhaps there may be a lot of comfort in the 350m shares if the share price is above 2 cents, the project partners could possibly decide they like having over $7m security held in the bond and just leave it at that.
And then after completion of the project the 350m shares are returned and struck off the register.

Bring on the signing of the RCA.