I took advice from Drazicc85/PASBOZ and others and that was to...

I took advice from Drazicc85/PASBOZ and others and that was to read and re-read the recent ESI Ann dated 19.07.2012

After reviewing the announcement I think it’s worth breaking down and put into some context as it has provided a bit of insight into ECT’s CSI (Monash/IMFA) and their position.

Firstly-I had mentioned in a previous post # 8272072 dated 04.07.2012
“With regards to why is it taking so long....first of all it's not a hold up-the company has until the end of the month as per ASX ann. But again-maybe look at it from another angle. What if the "hold up" is not from Monash and entities, but rather ECT needing to have certain precursors or conditions in place?........$4M has to be part of a larger transaction down the road otherwise what are they spending the $4M on...paperwork and patents? I think the intention has always been to build a commercial scale plant after all and that cannot be done with $4M.”

Now back to ESI Ann “Shareholder Update: Capital Raising” http://www.asx.com.au/asxpdf/20120719/pdf/427gyct2wz96rp.pdf

Mr Youren-“We are still very committed to the ECT
investment and are including the company in a number of additional projects that we have underway.”
Mr Youren is mentioning ECT as a company being included in a number of additional projects...Monash/IMFA horizons must be much further reaching than just ECT alone.

“We can confirm that the funding we have organised in conjunction with our partners IMFA includes funds for the development of Coldry, Matmor and EL5119.”
Again, but is specific to ECT this time-the mention of funding confirmed for Coldry as well as Matmor & EL5119 says that Monash/IMFA’s position must be for more than $4m needed for Coldry alone.

To go even further-if Monash/IMFA have a problem with funds then why state they will pay $6m after 26th July 2012 for 300,000,000 FPOD in ESI rather than the $4m already agreed upon? Does this sound like a CSI finding it hard to put the money together?

Now I understand the sceptics point of view-Monash’s JV with IMFA (IMFAMA) is recently formed...not a public listed company and don’t know who they are...money not in the bank yet etc. And I also accept that the $4m or $6m is an important step in moving the Coldry technology forward, but at 1.7-2c a share it’s worth sitting down at the table to watch this space.

I want to be clear that what I have mentioned above is speculative, but to be honest the language used in ECT's recent announcement is very strong to me. It has only bolstered my already confident sentiment in ESI.

All IMHO and DYOR always

Best of luck to all