The obvious Q is WHY dont Monash just deposit the small bikkies $4m and nullify shareholder concerns. We all have theories..."larger transaction" etc.
"Monash Capital remains confident that the transaction can be finalised by 26 July 2012...
Naturally, the Board is keen to resolve our longer term funding requirements and trust that the contingency plan is not required"
IMO there is still a ~75% chance the $4m will appear around July 26.
In the event July 26 passes - Monash proposes to pay ~50% ($2mill) more...what an UNUSUAL situation. Who does that? On the face of it you would assume Monash/IMFA have ALL the negotiating leverage. ECT are a microcap with a cashburn of ~$250k/month and living hand to mouth. If Monash walked away their reputation may be tarnished a touch - but for ECT it would be carnage.
Maybe this condition was written into the contract when the deal was struck? Or Monash are that keen on the techs they are happy to pay a 50% premium...which doesnt make much business sense to me. Amazing situation that defies logic in sooo many ways (to us uninformed s/holders).
Confusing... but either way - I like it because IMFAMA are highly credible.
"Greenard Willing which will effectively provide a $1 million advance against the expected R&D tax concession due in October-November 2012...Repayment: Cash in full from the R&D tax rebate refund."
I was thinking the rebate may be ~$300-400k. Seems the rebate will be at least $1m....nice bonus here folks! So thats ~$875k dilution free that comes into ECT's pocket now that combined with the recent $700k must go along way towards the ALL important DFT completion...and allow the eventual $4-6mill to go much further!
I see a window opening for an oppie conversion program once the DFT is done...~$20mill...goodbye dilution hello eventual dividends haha. Very very possible - Foz was doing it back when the sp was ~5c with VERY shaky fundamentals...DFT completion will provide rock solid fundamentals imo and oppie converting should be a breeze.
"In the meantime, the Interim Funding Measures will allow the continuation of the Design for Tender program – a critical objective for the company .”
The DFT continuation is absolutely No1 priority. If that was interrupted Id say ECT were history. I reckon the completed DFT will eventually make ECT a billion $ ++ coy as Matmor will be in serious play too. Dont laugh - what was the pre-carbon price WEC mcap with a proposal to build a 1mtpa plant in the jungle on Indo - $1.2B. Exciting potential IF you believe the ECT techs and the business model that will unleash them.
Mr. Youren states... “ We can confirm that the funding that we have organised in conjunction with our partners IMFA includes funds for the development of Coldry, Matmor"
"have organised"...past tense.
We know Matmor has been searching for a p/plant partner for a year or so and its developement is not far off being ready to build if you read the Jan update/June 15 ann.
Matmor is on IMFAMA's radar just as Coldry is. If they (and potential partners) are going to make "provision" for $70m for Coldry - WHY wouldnt they nail the BIG fish Matmor for ~$20-30m?
Regarding the ongoing saga of "Who are Monash" and can they pull this off $$ wise/do they have the cred/their head office in HK has an answer machine etc - we only have to google 2 names that make up IMFAMA:
* Neil Youren * Parry Agius
These guys have enormous credibility - and they are ECT's partners. I like the way ECT/Monash/IMFA are conducting things despite the delays...looking forward to viewing the IMFA website...should be very interesting!
tick tock...
ESI Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
(20min delay)