Ann: Shareholder Update, page-2

Key extracts from the announcement. Appears that Platinum through its strategic involvement and its FAST Finance business are backing ESI with all the future contingencies and planned activities built in as security for loans.

Why would the Indians come to see a demo plant if they weren't interested?? (self explanatory). Note that the visit is also going to include "business meetings".

Great announcement and very timely at a time SHs appear to becoming impatient.

Strategic Review
In line with its commercialisation objectives and in preparation for a change in operational mode toward project execution, the Company has engaged Platinum Road to conduct a detailed Corporate Strategic review.

The purpose of the review is to assist the Company in transitioning its business as and when projects go live, with a focus on enabling the attracting of strategic and institutional investment into the company.

Capital Management
Due to the dynamic nature of the business, the parties have built in flexible repayment options, contingent upon various planned activities, allowing for repayment in cash or shares.

Assuming activities go to plan, the loan may be satisfied in cash, or – at the lenders’ discretion – via a placement of ECT shares priced at 2 cents.

Should the VWAP of the ESI share price fall below 0.6¢ per share for 10 consecutive days, the conversion price shall become the lower of 2.0¢, or a 5% discount to the lowest daily VWAP for the prior 10 trading days.

The Directors believe this facility provides short-term capital management flexibility to the company as it pursues its key objective of technology demonstration in India.


ALL IMO. GLTA. DYOR.