funding agreement with jcltvf/ags capital

Refer to the $25million funding and how it works, please refer to the Annex A of the anns dated 7 July 2011
http://imagesignal.comsec.com.au/asxdata/20110707/pdf/01196047.pdf

A few points that worth noting:

1. Funding for each advance is to a max. of $1million in the form of share purchase at 85% discount.

2. Purchase price to be calculated as the lowest of the 7 preceeding trading days.

3. AGS will only hold a max. of 9.9% of the total share.

So for the first advance of $1million on 3 June, they received 183m shares which would have an ave price of 0.00544.

But that was 12.97% which contravened point 3 above. (of course at higher SP, the percentage of shares for $1m will be lower)

I guess the way around that at the moment is to sell down.

According to Form 604 filed today, Up till 5th July, AGS Capital Group offloaded 59906000 shares with the avg price of 0.00513 for a total of $307310 and brought their holding down to 8.9%. However, they made a small loss at least for the moment if their cost was 0.00544.
Don't forget these funding shares have no free oppies.

From F604, the 183m shares was not part of the placement of 378m + free oppies, but the first Advance.

There were another 50m shares sold into 0.004 after 5 July. I think those are from the placement unless AGS want to make more ST losses.

One thing for sure is that the funding is legit and is not a fraud like some posters have feared.

So I have to assume that EDM has cash of $1m from AGS and $1.5m from placement.

the 9.9% rule will present some tricky situations.

Interesting and perculiar reversed funding but at least we have it.

DYOR