I guess if all else fails, try to raise more money from the existing shareholders. How far will $1.3 million go?
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ELI ECO LOGIC INC.
TSE SYMBOL: ELI
APRIL 1, 1999
ELI Eco Logic Inc. - Rights Offering Announced
ROCKWOOD, ONTARIO--ELI Eco Logic Inc. ("ECO LOGIC" or the
"Company") (TSE-ELI) announced today an offering of rights to the
holders of its common shares resident in Ontario, Alberta and Nova
Scotia. Holders of the Company's common shares on the close of
business on April 15, 1999 will be issued one right for each
common share then held. Four rights will entitle the holder to
acquire an additional share at a price of $0.35 per share.
Holders that exercise all of the rights evidenced by the rights
certificate issued to them will also be entitled to subscribe for
additional shares, if available.
There are currently 15,087,806 common shares outstanding. If
fully subscribed, the rights offering will result in the issuance
of an additional 3,771,952 common shares in consideration of
aggregate gross proceeds of approximately $1,320,000. The
proceeds of the rights offering will be used for general working
capital purposes. The Company has appointed Trinity Capital
Securities Limited to act as soliciting dealer in connection with
the rights offering.
ECO LOGIC's business is to solve toxic chemical problems in a
safe, permanent, cost effective manner. The ECO LOGIC Process is
an innovative technology that converts on-site, organic hazardous
waste into reusable or disposable products. This non-incineration
process has gained high public and regulatory acceptance. ECO
LOGIC's world-wide hazardous waste cleanup market includes PCBs,
hexachlorobenzene (HCB), pesticides, dioxins, contaminated
electrical equipment, contaminated soils, chemical warfare agents,
and certain petrochemical wastes.
I guess you could look at it from the point of view that they are raising the minimum amount needed so as not to cause too much share dilution, which is appreciated. If they can then show that operations do not consume cash, but rather generate cash, then presumably the share price will rise and they can raise further funds at a higher price. On the other hand, if operations still consume cash, this $1.3 million won't go very far and they will have to come back again to raise more cash at likely a low share price. Who knows?
Regards.
Joe |
