On its face, this does not appear to be good news IMO. However, Nickto left out one component of this deal:

To facilitate the financing, Dr. Sankar Das Gupta, CEO of the Company loaned 2,040,816 free trading shares of the Company to the investors who participated in the private placement and received in return a pledge of an equal number of shares subject to a four month hold period. The new funds will be used for general corporate purposes.

To me, the price smacks of desperation, but over the last few months EFL has ultimately managed to pull together the $3M they had hoped to through the 3-tranche private placement announced in December 2014.

While I am by no means confident that they have enough money to execute their 'transformational acquisition', I have to think that the recently raised funds are targeted toward that objective, and the loaning of funds by Das Gupta is a way to get the money pulled together in short order.

With $3M from the recent PPs, $3M (or whatever remains) from the PP last June, (presumed) receipt of some government grants, and the assumption of some debt, it is not impossible that they are inching toward the purchase of that European plant, said to be a small fraction of $100M.

If they fail on the plant acquisition they are likely toast though, and the common shareholder may not have the confidence to see this thing through.

Just my thoughts.