boarding passes issued...will we take off., page-128

Ah D85

If you are not with us, then you have to be against us!

School yard stuff really.

Well, looks like I dont need to be apologising to anyone here.

Yet another ESI management promise that has not come to fruition...and apparently this new management will not follow in the foot steps of the "bad old days" where ann's were made and not delivered on. I' sure its not their fault...they can only repeat what they have been told.

OK - so $500K at 0.013 (not 0.02 as IMME would make you believe) - just check the 3B to be sure - instead of the $4 mill.

So Monash - a $300 mill asset Co with access to larger tranches could not cough up $4 mill within 3 months. Sounds dubious for mine - so they find $500K instead and say that they will now take up the 300 mill at 0.02c - but no date specified - maybe they learnt their lesson?

Is this less their $500K at 0.013?

Excellent news, but hang on...it will be in the form of a convertible loan (is this some new fan dangled way of dressing up a convertible note?).

...and here was BY LOL'ing La Jolla? Too funny.

So, Monash/IMFA/IMFAMA/etc. (Monash for short) will loan $6 mill to ESI on the priviso of being able to convert these monies to scrip at 0.02 some time in the future.

Excellent, so what will ESI be paying Monash in an interest rate for this loan? 10%? 15%, 20%? Is the interest paid monthly like most CN's or up front like GW's $1 mill?

How long before the SP is back to 0.02+ to make converting the loan worthwhile for Monash? What price will Monash convert these monies to non-escrowed shares to ensure that should they want to sell to market, they can but above 0.02?

Well if 300 mill shares were feed to the market over a period of time - and that's a lot of shares - SP would have to be well north of 0.03 I would think.

ESI have just had to implement the "fast finance" for $1 mill of money they will get back shortly from the Tax Man at a cost of $125K? But hang on, if Monash have just handed ober $500K - why the need to implement the fast finance - which is just factoring against a future R&D tax rebate due soon?

Holding out a few months would save ESI $125K. Is cashflow that tight?

Is the Monash loan then some form of "slow finance"?

Will be interesting to see how this all plays out, but ESI is not out of the woods yet and future funding has a very big Q mark over it.

The winners here it seems is GW and Monash. Monash have missed a deadline, but are rewarded now by loaning ESI $6 mill it seems at what will be very good interest rates to Monash (if the $1 mill GW is anything to go by).

Neil picks up funding for what 3-5% interest rate and then loans that out to ESI at what 10-20% - not bad going methinks...and all the while the SP has been dropping.

S asked why would people be getting out now. Maybe people are tired of the same old same old promises and non-delivery. Maybe they are turned off by yet another convertible anything debacle. Maybe they dont trust ESI's "new" CSI Monash.

I've said it before and I'll say it again - Coldry has legs, but it is the massive share dilution and uncertainty in attracting funding on reasonable conditions that, I believe, will be ESI's downfall.

I'm sure the current ESI management are doing all they possibly can, but the damage has been done and by the fact the $4 mill has fallen through, is still being done.

Shame really.

K