Posted the below a week ago...Kranky way off track yet again.
"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. "
Had the above clarified to me today.
If July 26 passes and no $4m - ECT then get $6m cash... (we dont wait until the EGM to get the $6m) and an EGM is called to vote on it. So we would go to the EGM WITH the cash ALREADY having been received.
Similar to Res 5 - ECT had RECEIVED the cash...and then it was voted on. If it was voted down - ECT would have had to pay Menzies back the cash. It was voted UP and Menzies received the shares.
At the EGM if we vote against it (lol) we would have to pay back the $6m. If we vote for it Monash get their ESI/ESIO and ECT get to keep the $6m.
The EGM would be a mere formality.
But how do we know WHEN Monash will pay the $6m IF the $4m deadline is missed...?
That comes down to whether you think the post Aug 2011 ECT Board - Monash/Neil Youren - IMFA/Parry Agius are the real deal!
ESI Price at posting:
1.4¢ Sentiment: Buy Disclosure: Held
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