con note

VWAP 2.58 today...not good Mr Con Note. Must be about time to call it a day on the 10 day VWAP?

Going on my calculations, the logical 10 day path is Feb 18 - Mar 2. Ave VWAP @2.7c. Todays VWAP doesnt help Mr Con Note. Time to convert imo.

So far the conversion has raised $850k...so $1.15 mill to go by May 17 (to get the 30% discount).

So far about 22.5 mill shares have been converted to raise the $850k.

The VWAP is lower now (2.7c) - so we can probably expect another 31 mill shares to be issued for the $1.15 mill.

Either way - they will want to convert the $1.15 mill worth at around these levels prior to May 17.

The con note holder will have done very well - having about 55 mill shares for the $2 mill...about 3.6c a share average. ($650k worth were converted when the sp was about 5.5c) - illustrating things could have been more drastic.

Also highlights how prudent/fortunate (I dont care about the reason) the $2.6 mill raising was. If that raising was not done then...I (we) wouldnt be posting here - game over given the market downturn and "other" ESI housework that needed to be sorted...con note. Callejas selling aside.

So after the note conversion - we are left with about 750 mill shares and 494 mill oppies...1.25 Bill fully diluted.

I can (have to) live with that. The $2 mill con note is gone...ESI are largely debt free and we have about $2 mill in cash...with the Tincom FS paid for. Not a bad financial state.

It will then be in everyones interests to push the sp....inc Mr Con Note.

There should not be any more dilution at these levels. We "know" the FS is going to be positive - so the next raising should be over 10c.

Thats my take on it.

ps SP3...Melb temps are good the next 2 nights - low of 17 tonight and a high of 30 tomorrow. Temps that are more conducive to Asians visiting?