Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) is pleased to advise it has received its 2017 financial year R&D Tax Incentive Refund.
- ~2.047 million R&D Tax Incentive refund received
- Current ‘Brevet’ R&D loan satisfied in full
- Surplus of ~$600k to support India project
The refund of ~AUD2.047 million is in line with accruals disclosed in the 2017 Annual Report, and repays in full the current R&D loan provided by New York-based financier ‘Brevet’.
A surplus of ~AUD600,000 will be allocated to working capital in support of the Company’s priority initiatives including the India Project.
The R&D Tax Incentive is a program managed by AusIndustry aimed at supporting eligible research activities.
The Company recently announced (8 Jan 2018) an AUD14 million facility from the same finance provider, Brevet, in support of its Coldry-Matmor R&D project in India.
The India project, which is estimated to cost ~AUD30 million, is covered by an advance overseas ruling for the Coldry portion (~AUD20 million), with a ruling on Matmor expected shortly.
ECT Chairman Mr Glenn Fozard commented, “The R&D Tax Incentive program supports innovation, both in terms of the valuable research generated by companies like ours, and innovation around the financing of that research. It has seen the emergence of financial products such as that provided by Brevet, which allows the forward factoring of anticipated refunds, providing additional cashflow to the business as we work toward delivering on our objectives.”
Following on from our last India project update (announcement 20 December 2017) the Company has worked diligently with its partners, NLC and NMDC and is pleased to advise that in-principle agreement has been reached on the recommendations stemming from the independent financial review required to finalise the Master Project Agreement, including; structure, intellectual property ownership and global royalty sharing arrangements.
While the details of those aspects necessarily remain confidential at this stage, the Company looks forward to submitting the Review Report to NITI Aayog in due course and will provide a full briefing following the expected signing of the MPA.
ECT India Chairman & Managing Director (CMD) Ashley Moore stated, “We are delighted to have reached this in-principle agreement on revisions to the commercial terms, and most importantly that we have also committed to meeting an aggressive timetable to reach financial close by June 2018. Our partners are now apprising their respective Board members this week to ensure they are kept abreast of the status of this important project.”
For further information, contact:
Glenn Fozard – Chairman: email@example.com