Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following quarterly activity report and Appendix 4C.
Quarterly Activity Report – 1 January to 31 March 2020
At the beginning of the quarter the Company was raising capital to assist with funding the rebuild of its Bacchus Marsh facility which was substantially destroyed by fire in October 2019. Funds raised together with insurance proceeds and borrowings will fund the rebuild. Other activities were largely focused on completing the design of the facility, identifying possible suppliers and clean up following the fire.
In March 2020, the Company’s business continuity plan was activated in response to the COVID-19 pandemic. The impact of this will be material from the commencement of the quarter beginning 1 April 2020 as the Company looks to reduce costs and assess the impact on currency movements, overseas supply chains and consider local alternatives.
The Appendix 4C summarises the cash flows for the previous quarter which were not materially different to prior quarters other than:
- Receipts from customers reduced substantially due to production ceasing as a result of the fire.
- Receipt of $1.1M in insurance proceeds compared to $650K in the prior quarter.
- Receipt of $1.688M from the non-renounceable rights issue and associated capital raising costs of $159K.
Cash on hand at the end of the quarter was $1.775M compared to $219K at the end of the prior quarter.
Authorised for release by Glenn Fozard – Chairman firstname.lastname@example.org-Appendix-4C