ELF and Options, page-6

Sam is 100% correct, the following is from the FAQ section at www.ectfinance.com.au

Scenario C

• You have 1,000,000 ESIOA Options.
• The total exercise price is $9,000.
• You want to capitalise the interest.
• You do not wish to make a deposit.
• The LSR is 100%.
• Total upfront payment: $0.
• Interest is capitalised (rolled into the loan amount) every 6 months incurring interest at 11.64% p.a. as follows:

• Repayment: At expiry of the facility, the loan balance will need to be paid out in cash, otherwise the loan will be due and payable and the Company will seek a buy-back of the stock at the prevailing share price (requiring approval of shareholders at the next general meeting), inclusive of additional interest, facility fees, and buy-back costs.