EECP are a conundrum. There is almost no reference to them on...

First 30 Last

Share
Profile

Follow
Idle Wanderer

2,264 Posts.

411

20/11/23

08:55

Post #: 70989675
Share

Originally posted by J L: ↑

You're dead right, Legman, but I think that we should look at in accordance with the requirements of the Agreements.

For memory, so I stand corrected, if need be,

My understanding is that the "8.5 Unused finance facilities available at quarter end (item 7.5) 5,000" is the result of a rock-solid agreement between NRZ and the Investor, guaranteeing NRZ a $5 million drawdown facility.

It can be initiated only by NRZ and must be activated within the agreed period.

Once activated, the Investor can take up its shares any time within the agreed period and, of course, under very generous conditions.

As you say they were cash strapped and were never going to make it through the quarter without accessing the Unused finance facility of $5 million.

This would not be the preferred situation for the BOD or shareholders owning to the extreme dilution. The BOD just won't cop it.

Enter the "Wang" with $1 million to save the day. It was not immediately ratified as stated, but why should it be put to the shareholders; it might be voted down resulting in potential problems. Leave it until the next quarter after it has done its job in fending off EECP for another quarter.

NRZ is now attempting to raise another $3 million. This should hold EECP off for another quarter of two.

The need for this extra money suggests to me that they are not expecting any early funding as the result of a Strategic Agreement.

So, Legman, they might be cash strapped, but with the financing facility, I believe that, if they can keep their creditors under control, they are definitely not insolvent.

But having said this, NRZ has a Current Ratio which must give the BOD nightmares. Couple this with an extremely low disposal value of plant and equipment (probably less than secured creditors), this company is on a financial knife edge.

I don't think anyone, other than Administrators, would benefit if this company failed.

Just my thoughts and opinion. I would appreciate some form of constructive critique for further discussions.

Expand

EECP are a conundrum. There is almost no reference to them on the internet. They appear to have a lending facility similar to the one with NRZ with Tower Resources, an AIM listed [UK] minnow company exploring for oil and gas in a small way in Africa.
EECP don't have a website, AFAIK. Maybe someone can find a Facebook or social media presence? I don't go there.
I am certain they are not connected with the similarly named Energy Capital Partners [ECP], a much larger private equity funds management firm based in New Jersey.
To arrive at the label "potentially", I think Legman merely has to rely on this note from the quarterly:

That note has been in financial updates for a long time. No document filed with the ASX since the last Quarterly has updated this arrangement.

NRZ Price at posting: 2.6¢ Sentiment: Sell Disclosure: Not Held
1 Upvote

1 Great analysis

Reply