Ann: ABID Initiates Coverage, page-31

"ABID initiates coverage" - this suggests that ESI did NOT approach Arrowhead to prepare an analyst report on ESI. The disclaimer on page 22 confirms that ABID received fees from ESI for the preparation of this report.

Some key notes to help the crowd understand the valuation provided:

1. The valuation of ESI shares is purely based on the proposed Indian Integrated Project.

Page 21 - "We have based our valuation for ECT based on Coldry and Matmor plants to be installed in its Indian Integrated Project. The company would generate revenue through fees from licensing its technologies, as well as margins from installation and maintenance of the plants."

IMO, this is an extremely conservative approach to value the shareholdings in ESI. We all are aware that plenty is happening with ESI outside of India and therefore the value of Matmor and Coldry technologies is NOT only limited to it's available use in India as part of the Indian Integrated Project!!

2. The variables used for the Indian Integrated Project reasonably provide a high and low range, but, how did ABID forecast these metrics to form a valuation opinion.

Given the TPA isn't executed and the details are NOT public knowledge, the approach seems very conservative to be able to forecast something that is UNKNOWN to us all.

3. Terminal Growth rate of 0.00%.

Really? This is a serious understatement, how could the technologies have a 0% growth factor into perpetuity. This is NOT a valuation of a finite asset, this is a valuation of technology with the potential to roll out globally. Yes there are risks involved with all technologies, but to cap the valuation of the Indian Integrated Project at the year 2028 for DCF purposes with no terminal growth factor is puzzling.

IMO, the valuation provided by ABID forms the base of the share price on signing of the TPA. Having this report released is very frustrating and limiting given the AGM presentation which identified key areas and markets this company is involved in.

I'm going to get my business class ticket and head over to NLC HQ to prepare for the NLC signing ceremony!! See you all there!!

Let's get ready for ESI takeoff!! GLTA. DYOR!