Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) advises that due to the economic slowdown as a result of the COVID-19 pandemic, the board and management has activated the Company’s business continuity plan and transitioned to a state of ‘care and maintenance’.
The health and well-being of our staff and our various business partners, as well as the wider community, is of utmost importance. For this reason, the Company closed its South Yarra office nearly 2 weeks ago and required staff to work from home. Activities at the Company’s Bacchus Marsh R&D facility have also been scaled back significantly with appropriate security measures in place.
While the engineering and design activities for the previously announced upgrade project at the Bacchus Marsh facility are well-advanced, it is clear that further activities that rely upon third parties will become less productive. External influences, including currency fluctuations and overseas equipment procurement, may require flexible adaptations to the project execution plan. The Company will continue to identify and prioritise any project activities that can be concluded with reduced external dependency.
To this end, and with the goal of preserving cash to implement the Bacchus Marsh project, a number of sensible austerity measures have been implemented. The total cash remuneration of directors and executives will be reduced by more than 50%, redundancies will be implemented where necessary, staff that are retained will be employed on a reduced basis, and the use of contractors in various parts of the business will be reduced or ceased. These measures will remain in place for a least 4 weeks and will be reviewed and eased as and when conditions improve.
The Company continues to meet all statutory and ASX listing requirements and will review these planned measures weekly. The market will be informed of any material changes.
Authorised for release by Glenn Fozard – Chairman [email protected]