will edm stage a rebound soon? - gloveski, page-18

After some added thought the amount being 700m shares is saying something. If they issue them at 1c (current price) they only raise $7m (if they raise at 1.8c they still only raise circa $12m). Hence they still need a significant amount of cash to meet the acquisition price of in excess of $21m AUD or thereabouts.

I think this is showing that they may in fact have some kind of offtake/debt agreement in place and are currently negotiating the amount to get as large a offtake figure as possible to minimise dilution and payout Far East. If you think about it any news on offtake is a considerable show of confidence in the project and should see the SP take off.

This will then see less of a dilutionary effect when the (if any is necessary) raising does occur to raise however much is needed (up to 700m shares merely gives them a solid amount to work with but clearly they think they can obtain the majority of funding from somewhere else otherwise they would have made a much larger allowance on the amount of shares to be issued in the resolutions given the current SP is 1c.)

I hope others get my train of thought here. The payment must be made to Far East in whole or with the option of them getting $5m Euro worth in shares if they had no offtake the number to be issued would have to be massive instead they have left it out there and capped at 700m. Speculative sure but this is my opinion of what is going on. I hope it pans out this way.