Originally posted by Whiddon3
All up cost of the ESIOA's are now about 0.012 when you factor in the interest. Life isn't fair sometimes. Also you can hardly call it greed. Many paid on or over 0.012 on market so effectively they are paying 2.0-2.4 and even higher in some cases. You will need to suck it up mate as I guarantee you no one will convert unless the strike is lowered IMO.
Strike may remain at 0.009 only if they can convince NLC and NMDC to sign the RCA now and then we come up with the cash. Regardless of what people state here there is no way they will sign the RCA without confirmation of the financial obligations IMO. Confirmation means cash in the bank and bond in place. This is business and they have us where they want us. The quickest and only way IMO is to heavily incentivise the ELF and fund this as fast as possible. Yes, I am an ELF holder but issuing more capital via a prospectus will take too long, the ELF is there ready to go with next to nothing to do except reconcile the cash as it comes in. What other options are there? March 31st is only a handful of weeks away
Originally posted by ironbark222
Ask ECT mate, You went into the ELF with open eyes and most likely singing its praises as well, those that did not were prepared to take a loss and flog their options. Instead of squealing for special treatment mate, stick to your convictions.
Hi Whiddon,
Hard to strip the risk of tone being ill-directed here, but please take this as a means to discuss around this, not attack.
People who converted their A's (and B's) up to now have also had their value of money impacted since conversion. Some of those who fronted up, put their support into the company prior to July 31st last year and paid to convert their shares did so knowing the full risk of this dragging on, and the share price dropping to similar low levels. That money had to come from somewhere. Contributing to the company cash flows would have been part of their reason (for some) to convert and improve the balance sheet. Some paid more than the market value at the time (with conversion of the B's exercisable at 1.5) which surely would have been in consideration of supporting the company over themselves, and demonstrating their faith for the long-term.
Not confrontational, but where did we get to discounts and incentives being the only option to fulfill the bond? The thread SP3 started last week has a number of options thrown up by posters.
Or... maybe ECT already has solution that doesn't involve discounts and incentives, if they do, ELF holders will need to accept that they don't get what would be a highly unconventional method to raise money at the risk of sending a poor message to other strong supporters of the company (and yes, ELF and non-ELF shareholders are all supporters in one way or another.
I would convert at 0.9 now if I had ELF participation.
(20min delay)