same outcome for less dilution+board benefits

Dear fellow confetti counters,

Who is in the drivers seat ? Have ESI beaten monash at their own game ??

A quick subtraction of shares and options on issue as of 17 FEB 2012 from shares and listed options on issue this Feb, post the recent 3b shows the confetti machine has grown the piles by about 240 mil heads and about half that number of options.

Considering about 70M heads and 35M tails were part of the pay back for LJCI and Menzies C note, we should be kind and broadly state, that for around 200M heads, and 100M tails,,, ESI has managed to place itself in a similar status going fwd, to where it may have otherwise deemed to have been,, IF the Monashians, had been true to their pledge Version 1. early last year.

Given that ESI have received $2.3M from this latest draw down,,, and monthly cash burn is in the order of $200k ish per month,,,and considering that it was quite expensive money given the share conversion rate of .903cps,,,,we could expect no better than .9cps on an ARUP 10% discount to vwap atm,,,but would expect 4 and a bit months from now,,, after around 900k to $1m of the $2.3m is burnt up in w/cap,,, having $1.4m ish expensive dollars on hand at that time, ( mid late June) would be not as smart as drawing down a many names fast finance mil for as little as 2mil share dilution,, and owning DFT ASAP,,, given the sp should be multiples of today's prices in a known ALDP granted $$$ environment, with $1M costing mre like 20m shares than 100m.

Mid Jun the options could well be so deep in the money, cash burn could be facilitated c/o a foz conversion discount negating other options.

I am hoping the lads have factored this in to their DFT final payment contingency. After all,, the ARUP Bond will be effectively extinguished once DFT is in ESI's hands,,, and ESI at that point have opportunities to sell DFT licensing agreements,,, once they learn how to close deals.

There may indeed be no need to raise further cash burn,,, as given the potential for the sp to increase on positive ALDP noise or news,,, the oppies will be so deep in the money again,,, a Foz run option conversion discount plan could easily see the Coy with around $15m in the bank given that there are atm,, 871.9 million on the register.

And the board benefits ?

No Monashian shares,, means, the only way they get 1 director vote,,, is via effecting an SPV,,,,PLUS,,, given the equity ESI may end up with in SPV ( 50% or better ) monash or whomever,, would be hard pressed to argue 2 directors imo,,,


Looking fwd to a refreshed new look CSI for SPV for CDP and a fully funded DFT ( plus half yearly ) update soon.