The US-based leading international credit rating agency, Moody’s, has upgraded India’s rating to “investment grade”. Indian companies would be able to get significantly better terms when borrowing in the global financial markets. Four MoUs with China were signed on Friday to launch an integrated steel plant and three pig iron plants in West Bengal envisaging a total investment of over Rs. 2,300 crores. Chief Minister, Mr. Jyoti Basu, and the Minister for Commerce and Industry, Mr. Bidyut Ganguly, were present at the signing ceremony. The signatories were State-owned firms of China, China National Scientific Instruments and Materials Import and Export Corporation, Beijing, and the Central Iron and Steel Research Institute, Ministry of Metallurgical Industry, Beijing, and four Indian companies."
(This article was published on December 2, 2014)
Now its clear India is absolutely in the Worlds focus...ie ECT partners will prosper. great timing imo.
June 29, 2009
"agreed payments of A$1 million cash, 55 million shares and 110 million options have now been made, making ECT and its subsidiaries the owners of the Coldry technology"
today...
"150 million ESIOB options (Agreed value of $1M) and $3.5M cash, paid from future ECT cash flows"
Above are the respective deals.
Today is the day ECT became a complete company. No more will directors have to say to potential investors...
"Yes we don't own Matmor - but we WILL" ...In the past the Matmor IP acquisition was muted at @ $20mill...unachievable.
Now potential Billion $ monster investors like NLC/NMDC.......CANNOT......seriously talk deals unless at a bare minimum you own the IP. Its basic stuff and I would imagine Ashley/Glenn on occasions would have been in very awkward/embarrassing situations...Eg...Hey Ashley - Im the MD of a subsidiary of NLC - I hear you want to do this and that and have this that can do that - but YOU don't even OWN the Matmor tech. Now Ashley - seriously HOW can you expect us to stick our necks out for Matmor when ECT have not done similar?
"Seriously Ashley - we like your test samples. We understand Matmor is "real" - but we need the IP under your umbrella before we can seriously negotiate."
After today - Ashley can say YES.
Now - given the ASX ECT response today - there has to be a "reasonable" chance of Coldry/Matmor pulling off the unlikely.
Now what do Callejas actually have that incentivises them going forward?
Callejas are now huge ESIOA/ESIOB holders. There is no need for an escrow - Callejas have effectively escrowed themselves via illiquid oppies. In 2009 Callejas sold their 55m shares at about 5c. They were cash strapped and sensibly they sold. However - they have since held their 110m oppies through thick and thin and now have another 150m oppies of the ESIOB kind ex at 1.5c. Now lets look at the oppies...
Now WHY has the ~$1mill 150m ESIOB deal been done at a premium to the market? It was done at 0.067 when the oppies were trading ~0.4. Nice. Now the other component - the "$3.5M cash, paid from future ECT cash flows"...Seriously - I view that statement as something ASIC required. IMO - I discard the "$3.5M cash, paid from future ECT cash flows" statement. Think about it - if Coldry/Matmor successfully progress through the various IP -> pilot-> demo -> stages....Serious investors will likely invest heavily.
Think WEC - think any other 2 wrapped in 1 potential ingenious global industry changers. IF Coldry/Matmor progressively pass through the hoops -> funding will follow...usually at a higher sp. The bloomingmob elsewhere whom spend their literal 24hr lives criticising Coldry/Matmor should have bought ESI on the cheap. Instead - they will squander their lives raving the long gone Vic Pilbara and the dice dream 10 yrs down the track.
Why has the deal been done at ESIOB ex 2017 ....1.5c rather than the convenient ESIOA ex 2017.... 0.9c. The current sp is 1.1...0.8 last trade. So WHY did Callejas agree to the ESIOB - 1.5c...? My guess is Callejas understand bringing Coldry/Matmor to commerciality is going to be a Long Term relationship.
IMO - the fact that Callejas now only own ESIOA/ESIOB - ~260m oppies...I say - Welcome Callejas Family. You have clearly demonstrated your confidence in the ECT Board and Coldry/Matmor IP's.
Now moving on to todays trading. Callejas paid ~0.067 for their ESIOB 1.5 ex oppies. Trading today fell in line with that. In a way you could say Callejas have set a "floor" via their ESIOB buy. Regarding tech traders going forward...interesting to see the 0.9 "gap" close in a second in volatile trading. But what followed in a "second" was a clean 3.5m buy at 1.0. From then on the afternoon built to 1.0 and seemingly a bot took 100k lots at 1c till close. IMO - given the 0.9c gap close...we could be on the traders radar.
I reckon - given todays 2pm open and 15m share turnover in 2hr -> bidding the sp up 50% ...tomorrow is going to be a stampede. Now - who is out there at 2pm Thurs waiting for the long term dog ESI to do its usual disappoint the market trick...? Id say plenty of Vic Pilbara LT die hands changed their stripes (if they were liquid) and bought ESI recently. Now - there will always be 4 or more that will keep a comedy show trickling on in denial.
Now - ESI have seemed to have entered into a more relaxed sphere....eg from 2.4B ESI holders and in recent times few sellers.....and given Menzies/Thomsons/Callejas/McEwin entities have stood LT firm....I reckon most holders will await until ECT ann the ECT/India 95% arrangement.
Now how long will the next perceived ann - ECT/India be...?
No idea - but be assured - given todays late trading and the ECT ASX ann's of recent...imo ESI will be trading north of 1c tomorrow - and about 2c mid Feb and building to 5c by anticipated NLC/NMDC binding agreements.
Lets start with tomorrow. I reckon 1c and.....
Well done Callejas.
ESI Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
(20min delay)