Fully owned subsidiary of Environmental Clean Technologies Limited (ASX: ECT), ECT Finance Limited (ECTF or Company) would like to inform the market that the next anniversary of calculated interest for the Equity Lending Facility (ELF) loans was effective as at 30 July 2019.
- Interest letters to be sent to ELF holders from the week starting 5 August
- Interest to be paid (where applicable) before Saturday 17 August 2019.
- Capitalised interest to be calculated Monday 19 August for the period 31 January 2019 through to 30 July 2019.
- Interest-free holiday for the 6-month period 31 July 2019 to 30 January 2020
- ECT Chairman, Glenn Fozard to direct 100% of his ECT Limited executive contract to the repayment of his ELF loans through to the next anniversary date of 30 January 2020.
The scheduled 6-monthly anniversary date for ELF loans was 30 July 2019 (the “Interest Period”).
In accordance with past practice, ELF holders will be sent interest letters advising them of the timeframe required to either pay the interest component or allow it to be capitalised to the loan balance.
Letters for this Interest Period will be sent to ELF holders in the week starting 5 August 2019 and will allow until 19 August 2019 to pay the interest calculated for the period of 31 January 2019 through to 30 July 2019.
ELF holders wishing to capitalise their interest for that period need not do anything as in the absence of any action the interest method will automatically be changed to ‘capitalised’.
The board of ECT Finance has also agreed to an interest rate holiday for the entire next Interest Period from the 31 July 2019 to 30 January 2020. This will mean ELF holders will incur zero interest against the loan balance for that period.
ECTF Chairman Jim Blackburn commented, “All ELF holders are currently ‘underwater’ on their position and it’s not sensible to add interest to this position when no equity currently exists. Whilst we are clear in our position that value can be returned, the Company does not wish to reduce the prospects of ELF holders returning to an equity position by adding further interest to their loans.”
ECT Chairman, Glenn Fozard, has also agreed to contribute 100% of his ECT Limited executive remuneration towards the repayment of his ELF loans, from 1 August 2019 through to 31 January 2020.
Glenn Fozard commented further, “I am very mindful of the disappointment that a lot of our shareholders have with regards to recent outcomes in India. This has led to a significant loss in market value which has caused real losses of shareholder value. In contributing my ECT executive remuneration to repaying my ELF loans, the Company receives this cashback and I am effectively buying stock at 0.9c plus accrued interest. This is as clear a statement as I can make about what I see as the prospects for the Company whilst also backing the initiative to reduce the Company’s operating cash requirements.”
For further information, contact:
Glenn Fozard – Chairman firstname.lastname@example.org