Replies to post #719 on ECGI Holdings Inc (ECGI)

[Potse]

WhiteNOC...ECGI financing.....

Is it called death spiral financing:

Post-money US$20 million on a fully diluted basis. There are currently 92 million shares outstanding and 5,000,000 shares issuable upon exercise of outstanding options, warrants and convertible debt. Investor will own 24,250,000 shares representing approximately 20% of ECGI’s outstanding common stock. If shares or options or other rights exercisable for or convertible into shares of ECGI are issued prior to closing, the number of shares to be issued to Investor will be adjusted so as to equal 20% of ECGI’s outstanding common stock post-deal.

It should be very interesting to see if ECGI successfully closes on this latest financing. I will need to see a definitive securities purchase agreement (and would like to see more detailed information regarding the proposed joint venture), but from a retail investor perspective this financing looks pretty attractive based on the basic/limited information included in the term sheet.

If the fully-diluted share count at the closing is relatively close to the number presented in the term sheet, this would be a $4M investment in ECGI at about 16.5 cents per share. Generally speaking, ECGI's financing-related efforts up to this point have turned out to be reasonably share-holder friendly: some debt settlement at 13.3 cents, convertible debt at 15 cents, and private placements at 9, 10, and 14.3 cents.

According to the term sheet, the closing date for the financing was April 1 2015, or up to April 16 if the investor exercises its right to a 15-day extension. So I anticipate there should be some type of info regarding this particular financing within the next couple of weeks or so.

Term sheet.....

http://www.sec.gov/Archives/edgar/data/1394130/000072174815000151/ecgi8k031815ex10_1.htm