ECT (ASX) Directors

Originally posted by JK75: ↑

I emailed Glenn and got the following response

Q: My concern is most of the CR will go toward existing debt and we will still be in a position of liquidity and cash flow risk
Can you provide confidence that post the CR we have funds to remain in business for the next 18-24 months to allow some of the initiatives to come to fruition
My concern is I participate and lose more

Answer

Very little cash from the rights issue is going towards debt.> >
The existing FY18/19 R&D debt of $1.1M will be paid off via the tax return refund due in ~2-3 weeks which will leave ~$200k remaining to pay off the bridge loan we took out ahead of the capital raising period.> >
There are also two loans $800k and $780k which wont take any cash out of the capital raising, rather upon meeting the minimum, their debt will be retired into the rights issue on the same terms. Again, no cash will be used to pay these off.> >
This leave ~$600k of trade creditors which will be what is paid with cash, although there is likely to be about $150-$200k of this which will also roll into the issue on the same terms instead of using cash from the issue.> >

Hence, its like that of the minimum cash we raise, only $400k-$500k of the cash will be used to pay debts.> > I hope that answers your question.

Expand

Originally posted by JK75: ↑

I emailed Glenn and got the following response

Q: My concern is most of the CR will go toward existing debt and we will still be in a position of liquidity and cash flow risk
Can you provide confidence that post the CR we have funds to remain in business for the next 18-24 months to allow some of the initiatives to come to fruition
My concern is I participate and lose more

Answer

Very little cash from the rights issue is going towards debt.> >
The existing FY18/19 R&D debt of $1.1M will be paid off via the tax return refund due in ~2-3 weeks which will leave ~$200k remaining to pay off the bridge loan we took out ahead of the capital raising period.> >
There are also two loans $800k and $780k which wont take any cash out of the capital raising, rather upon meeting the minimum, their debt will be retired into the rights issue on the same terms. Again, no cash will be used to pay these off.> >
This leave ~$600k of trade creditors which will be what is paid with cash, although there is likely to be about $150-$200k of this which will also roll into the issue on the same terms instead of using cash from the issue.> >

Hence, its like that of the minimum cash we raise, only $400k-$500k of the cash will be used to pay debts.> > I hope that answers your question.

Expand

Originally posted by JK75: ↑

I emailed Glenn and got the following response

Q: My concern is most of the CR will go toward existing debt and we will still be in a position of liquidity and cash flow risk
Can you provide confidence that post the CR we have funds to remain in business for the next 18-24 months to allow some of the initiatives to come to fruition
My concern is I participate and lose more

Answer

Very little cash from the rights issue is going towards debt.> >
The existing FY18/19 R&D debt of $1.1M will be paid off via the tax return refund due in ~2-3 weeks which will leave ~$200k remaining to pay off the bridge loan we took out ahead of the capital raising period.> >
There are also two loans $800k and $780k which wont take any cash out of the capital raising, rather upon meeting the minimum, their debt will be retired into the rights issue on the same terms. Again, no cash will be used to pay these off.> >
This leave ~$600k of trade creditors which will be what is paid with cash, although there is likely to be about $150-$200k of this which will also roll into the issue on the same terms instead of using cash from the issue.> >

Hence, its like that of the minimum cash we raise, only $400k-$500k of the cash will be used to pay debts.> > I hope that answers your question.

Expand

Thanks for sharing JK75, This is why the Na Na squad need to back off and let people decide without the scaremongering, as they know nothing, although they think they do LOL!

Very sour negative bunch, obviously because they have nothing they take it out on the holders trying to get ahead.

No.	Vol.	Price($)
60	31018520	0.2¢

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31018520

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13974748

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60	31018520	0.002
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31018520

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36001532

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Price($)	Vol.	No.
0.003	13974748	32
0.004	7713019	12
0.005	3676859	23
0.006	3178567	7
0.007	918333	2

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0.003

13974748

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7713019

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3676859

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918333

(20min delay)
Last 0.2¢		Change 0.000(0.00%)		Mkt cap ! $6.343M

Open	High	Low	Value	Volume
0.2¢	0.3¢	0.2¢	$93	40.51K

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