ECT 25.0% 0.3¢ environmental clean technologies limited.

What will it take to move share price, page-4

  1. 2,156 Posts.
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    My understanding is that they are only paying $32m, and ECT is responsible for the other $3m...


    What movement is the market expected to take?

    The announcement is saying that after months and months of negotiations and problems and costs... that ECT, a $70m company is confirming that it has signed away 51% (controlling stake) of it's core business technology, for the price of $32m...


    And that this deal currently has Zero royalties associated with it, has ongoing management fees in the millions (cap raise anyone?), and that if by chance that the technology is proven viable... that we will likely need to massively dilute to be able to ante up our 49% share... or give away even more of our holdings.


    Looks to me like the market has already factored in the current situation... come back in 5 years time when the technology is either Proven or Failed... that will be when it can be a real contender or dead and dusted.



    My Prediction (and I am very happy to be wrong) - Short spike up in the next 2 weeks, then a quick drop back to 1c, as all the disillusioned exit realizing there is no quick win here... then a slow drop down to 0.7c over the next year, with a Cap Raising around June next year at 0.6c with free attaching option with a 2c strike.



    Only my opinion, and an uninformed one at that!

 
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