Ann: Update - XEPT Transaction, page-7

I think I’ve found a way to close out this transaction and leave everyone currently involved happy (NOTE: I’m going to mostly use ‘general’ figures throughout for ease of interpretation):

We all agree to allow XEPT & Monos to revise their conversion price to 0.00069 (i.e. half of what it is currently).

Current shareholders (excl. Monos) end up with ~7.5% of the company (instead of ~15% under the current deal).

The other 7.5% is effectively captured/shared by XEPT & Monos, taking their holdings post transaction completion to (respectively), 58.375% (55% + 3.75%) and 33.75% (30% + 3.75%).

Anaeco then announce to the market that, on top of completion of the transaction, XEPT have engaged AnaeCo on a multitude (or similar wording) of projects throughout China and South East Asia.  Share price rises to ~4.7c at which point XEPT and Monos divest the 3.75% ‘extra’ they both picked up.  They would each receive ~$11.5m for their 3.75% at a VWAP of 4.7c.

The outcome:

• XEPT receive $11.5m from sale of their 3.75% - enough to cover their outlay under the tripartite deal. They end up with 55% (their original ownership percentage under the current deal) of AnaeCo for free;
• Monos receive $11.5m from sale of their 3.75% - enough to cover their remaining debt (on top of what is converted to take them to 30%), plus cover the AnaeCo cash component, and still give them money leftover. They end up with 30% (their original ownership percentage under the current deal) at a profit;
• Anaeco have no debt, money in the bank, projects and revenue in the pipeline;
• Current shareholders head off to:
  • the luxury car dealership;
  • real estate agency;
  • Bahamas;
  • etc…

Win/Win/Win/Win I reckon…!

Cheers

Freighter