Sure Capital has agreed to offer notes, once certain conditions are met, including satisfactory evaluation of collateral, which is defined in the Agreement to be all the assets of EEGC.
The July 9 PR makes it clear that the notes offered by Sure will be 'principal protected,' I am guessing by the collateral put up by EEGC.
You say there is more than meets the eye -- could be true, if for example Sure Capital is willing to accept one set of collateral put up by EEGC, but offers different collateral to note buyers. But, as pointed out by roger wilco, the management structure of Sure is substantial, and so unlikely to make such a deal, as that would imply risk for Sure, which seems to operate as a facilitator between gulf region investors and projects requiring capital rather than as a provider of capital at risk.
The stock market today seems to value EEGC's assets at $20M in round figures (take away liabilities and you get stock market value). Do not think that collateral is worth $180M to an investor, or that 11% collateral (20/180) would be considered adequate principal protection by investors. And this of course assumes that none of the assets are already pledged to others.
Note that 'additional securities' could be added to the collateral, per the Agreement, but not sure where they would come from. Perhaps the new Directors, who seemed to have significant assets?? Do they believe enough to put up additional collateral?
AI
