Hmm... you have a very expansive definition of "has".All EN1...

Hmm... you have a very expansive definition of "has".

All EN1 "has" is an initial tranche of USD $1.75 million, unless its market cap falls below USD $11.667 million, which it has now, so now we are waiting for the average MCAP of the last thirty days to be calculated, of which we can draw down 15% (i.e. around USD $1.50 million if the price hovers around 2.4 cents). So this announcement is basically for only roughly USD $1.5 million, as the remaining tranches require approval from the Investor on a case by case basis. How long will USD $1.50 million last EN1 based on its current performance?

The next 7 tranches will only be released when the Investor agrees to proceed with a particular tranche, and the amounts of each tranche may be changed by agreement every time a tranche is to be granted.

Contrary to your "best thing" comment, the Investor has been issued with 13.75 million options, with an exercise price of 110% of the closing bid price of EN1 shares on the day prior to the release of the options. The Investor also has 28.50 million shares it can use to offset conversion/amortisation of the ZCSs. Also, conversion of the ZCSs can happen, at the Investor's discretion, at the rate of one full ordinary share for every AU $0.35 of face value converted.

So basically, the Investor was "paid" in share options, however they won't be paid in interest unless we default.

Further, the second purpose of this agreement is to "repay a bridge loan recently issued by the Investor" - so the same Investor issued us a loan already. And now we have obtained additional loans from the investor, where now the Investor has a general security interest over all of the assets of EN1.

The fact that a lot of people here wererelying on the credit line to boost the share price is a big worry.In addition, it is also concerning that there is now talk of gettinginstos on board - why is talk of bringing on instos or creditors viewed positively? Isn't this a sign of an unhealthybusiness model requiring financing and re-financing, and morere-financing? A lot of people here said that an investor would onlygive money to a healthy company - what a load of rubbish. An investorwould determine the risk of insolvency, and also determine what exactamount is required to be loaned, and what high interest is to becharged, in order to ensure there is an adequate ROI before the loanis repaid or a company becomes insolvent.

You can have all the creditors and instos on board that you want, but if the companydoesn't begin making PROFIT, then it is all for nothing. And toanswer you next question, in the long run, although you can capturegreater market share by a debt-fueled expansion, banking on the factthat you will eventually become profitable, you cannot sustainthat market share unless your underlying business model is asuccessful profit-making one. In other words, in order for adebt-fueled expansion to work, the business model generally wouldhave to have been a profit-making one before the aggressive expansiontook place for the chances of its debt-fueled expansion to succeed in the long run, or, the model will need to be successfully developed into a profit making once some time during the expansion, which is what we are waiting and hoping for.

Theinvestor providing this credit facility protected itself very well -they saw the risks in providing a clean $15 million debt-facility to aloss-making company and correctly structured the financing in such away to protect and control their investment, and also to make money off the debtthat EN1 may laden itself with, whilst at the same time obtaining shares in the Company as per the Agreement.

In my opinion, the USD $1.5 million initial tranche, which is what the agreement allows EN1 to initially utilise, is only 10% of the USD $15 million credit line I believed would be granted. The rest of the tranches are at the complete discretion of the Investor, so we can't take them as guaranteed to occur (as the Investor is able to refuse to grant them if they aren't happy with EN1's progress).

The above is all my opinion, and I advise everyone to carefully read the Agreement and do their own research.

Any feedback or comments are welcomed.