From alpha securities report 31-July-2012 it’s a good...

From alpha securities report 31-July-2012 it’s a good read.
Borris..… I am not suggesting anything sinister here.
It is just a history lesson.

Summary
Oct-2010 Furneaux Capital Ltd loans ESN up to $4.15M for 180 days.
July-2011 successfully recapitalised by a rights issue and placement for $4m+
July-2011 ESN again trades on the ASX
July-2011 ESN repays Furneaux Equity Ltd the full loan amount of $1.95M

Link to alpha securities report
http://www.fnarena.com/articles/04B61279-F70E-5555-AE4B7147C9F6CC24.pdf

Grab from alpha securities report

1.1 Back ground
In August 2010, the Company received a takeover offer from Mooter
Media Ltd which was subsequently recommended by the Company’s
Board on the basis that a successful takeover by Mooter would allow
ESN to seek re-instatement of ESN shares on the ASX and to enable
the Company to raise capital in order to fund further development of its
proprietary education-based software and applications. To this end, the
Company entered into a loan agreement with Furneaux Equity Ltd on
18 October 2010 for a 180-day loan facility of up to $4.15 million.

In April 2011, ESN re-acquired the vPublisher business (which was
previously in liquidation). vPublisher was relaunched in July 2011; the
same month that ESN successfully completed its recapitalisation via a
rights issue and placement that raised in excess of $4 million. The
company’s shares later resumed trading on the ASX on 25 July 2011.

1.2 Funding
The cash balance as at 30 June 2012 was $0.4 million. The balance
sheet is debt free, with the Company, in July 2011, having repaid in full
the $1.95 million loan obtained from Furneaux Equity Ltd

1.3 Capital structure
There are currently 985.3 million ordinary shares on issue, with a
further ~8.2 million unlisted options on issue in two tranches, and all
exercisable at 1c per share. At present, the unlisted options on issue
are all out-of-the-money.