On settlement, within a week of the17/11 meeting, ERM somehow enter into a C/R of 7.5M in return for more shares. (that averages them down)
On completion of the $7.5 placement, I think they then get their existing loan of c.$3.75M repaid by EGO.
Maybe that leaves EGO sitting on a bit of BP condensate outstanding a/c for Sep/Oct?; plus the rest of the C/R, now down to $$3.75M.
ERM will have their security over the company assets, and some new cheap shares.
EGO will improve by the 100% ownership of the condensate income and maybe $4M in the bank (less expenses of this paperwork, KPMG etc)
I'm now curious about the now 100% "owned" EGO's reasoning behind rushing into another $10M C/R. How long does it take to start and complete one?
My desire is not for current shareholders to assume that this $10M needs to be raised at a rushed, fire sale price. e.g. permits, rigs etc.
There will be time to carry out more resource R&D and improve our market image and Share Price.
If existing SH don't take it up in full, maybe "enough" will be temporarily "enough".
I'm not up with the 15% rule, but my guess is that follow-up C/R's will be permitted.
We all expect EGO board to perform, so lets not be too eager to push them into a cheap C/R, nor let them drag us into one.
I haven't mentioned the likelihood of farm-ins, but that is one of the reasons for the EGO/ERM Plan roughly put before us.
I think that's just about me done for now.
Cheers, Japes.
EGO Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
