In my opinion, the three somewhat (positive) surprise resolutions to be voted on during this year’s AGM are:
Firstly, perhaps less surprising, are the two resolutions (numbers 5 and 6) relating to the issue of options to executive directors and employees. This time, shareholders will be able to vote on the issue of options for executive directors and employees separately. Also, in contrast to last year when no minimum price was set, the minimum exercise price is now set at 50cents. The issuance of options is linked to monetizing EWC’s major assets (ie. 1 mtpa (of 2mtpa) Sengkang lng, Philippines lng hub and 400 MW (of the 600 MW) Philippines power plant). This augurs very well indeed for the successful commercial operations of these assets and serves all parties, including current shareholders, very well indeed.
The more positive and surprising resolution is resolution 7 ie. the proposed issue of $25million convertible notes to EWI. This proposal is now bypassing SCPE ‘veto’ re: such an issue, as, in the proposal submitted for a vote at the AGM, the issuing company of this convertible note will be EWC and not EWP. In my opinion, this is a very positive and creative move (by management) and demonstrates the huge confidence EWI has in the future profitability of EWC. Linking the passing of this resolution (as well as shareholder approval regarding resolution 3 i.e: Graham Elliott’s appointment as a director of EWC) as being a condition for the deferral of $120 million debt to Slipform to at least 31 October, 2015 further indicates the unshakable belief EWI (i.e S. Elliott) has in the profitable and financially strong future of EWC. I will vote in favour of these resolutions as it aligns my interest, as a long term shareholder, with EWC’s major financial backers, executive directors and senior employees. A win for all. Let the ride begin!!!
EWC Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
