spp, page-30

I hope this post puts everyone in the picture.

ESI has entered into a contract with the Calleja Brothers to purchase Coldry IP for $1m plus 55m shares and 110m 2c options

ESI has announced a SPP to raise $3.5m, the purpose of the SPP is to raise the $1m due for the IP and the balance is for working capital.

The SPP has been underwritten by Fiori for $500k and XXX for just over $500k.

Flori has sub-underwritten its $500k from I believe 2 Doctors.

XXX has sub-underwritten its $500k from a number of long shareholders.

Because both lots of sub-underwritters are not institutions ESI has requested that the $1m be placed in a Trust Acc pending the opening and closing of the SPP.

If the SPP is fully subscribed then the $1m wont be needed and will be returned to the sub-underwritters.

The chances of the SPP be fully subscribed is remote as firstly the current SP is below the SPP price, and additionally to raise $3.5m, 700 of the current would have to subscribe for the $5000 to which they are entitled.

As I understand it the SPP documents have been prepared and will be out this week. They should have been available last week but the Solictors are treading water( and earning some more fees)

And finally Isuspect that the Calleja Bros are happy with the deal because they will in effect own 165m shares on a fully dituted basis, this is approx 15% of the company.