Equity Lending Facility
Frequently Asked Questions
To view the frequently asked questions, simply click or tap on the questions below to expand the content.
When did the ELF loan expire?
Per the Loan Agreement, the facility concluded on 30 July 2020.
What happens to my shares now that my ELF Loan has expired?
Your shares are to be transferred to ECTF. Some are released to the ELF Borrower (now ECT shareholder).
If the ELF balance at the end of the 3-year term is less than the ELF balance at the start, then the percentage decrease in ELF Loan Amount is applied to the shares and these are released.
Q: Since I did not repay my ELF Loan, am I in default?
Yes, however, ECTF will not be registering a default with credit reporting agencies against ELF Borrowers. As such, there will be no effect on Borrowers’ credit score or default history if they have not repaid their ELF Loans. The only recourse is to the underlying shares that were issued at the same time the ELF Loan commenced.
Q: Will ECTF sell my shares on the market?
Under the terms and conditions of the Loan and Security Deed, ECTF has the right to take possession of shares relating to ELF Loans that have not been repaid.
To repay its loan to ECT, ECTF has the right to seek a buy-back of the stock at the prevailing share price (requiring approval of shareholders at the next general meeting), inclusive of additional interest, facility fees, and buy-back costs to either cancel shares or sell your ECT shares on the market.
Q: Can I claim interest on my ELF Loan even though it will not be repaid?
ECTF cannot provide taxation advice. Please speak to your accountant on the treatment of interest on your ELF Loan.
Q: What happens to my shares if I have repaid part of my ELF Loan?
The board of ECT Finance has decided that for those borrowers that had a lower principal balance at the end of the loan term compared to the start, the percentage decrease will be applied to the number of shares held as security and resulting number of shares will be released to the borrower.
Q: How much did this ELF program raise?
The ELF raised a total of $2.36 million.
Q. I hold ECT shares in addition to those under the ELF. What will happen to them?
When ECT Finance provided the loan facility to enable borrowers to exercise their options, the shares issued as a result of that transaction we’re locked and held as security against the loan.
Any ECT holdings not related to the ELF transaction will remain unchanged.