Ann: Rights Offer and Market Update, page-4

Hi @heraclitus my knowledge of EGL is limited but this is how it looks to me.

EGL had 2.3m of cash and other financial assets versus 2.3m of debts and is supposed to be profitable so I guess the money is to implement their TAPC strategy. On the other hand, their history of defaulting might make creditors uneasy, so I'm not sure what to make of the raising other than the business is not self sufficient.

$750k won't go far and current MC is less than what they paid for Baltec in 2013. They could divest TAPC (G&V or ESP or both) but I don't think Baltic would support corporate costs which are over $1m. Baltec is probably worth less now it is part of EGL if they can't get TAPC firing.

It all rests on them being able to leverage global Baltec contacts to get TAPC profitable as it looks like business isn't going to improve in Australia. High risk - until they can show that TAPC is profitable and growing I am reluctant to enter.