Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following update regarding its current capital raising program.
- Applications under the current Entitlement Offer closed 5pm (AEDT) Tuesday 19 November 2019
- Total support for the offer circa $1.7m including ~$1.4m in cash applications and further $300k in commitments to shortfall
- Increased level of expected insurance proceeds and proposal for R&D finance associated with capital upgrades have reduced the Company’s cash requirements
- Shortfall offer period closed early as at 9am Friday 22 November 2019 to make way for new offer
- New Entitlement Offer with reduced minimum subscription and enhanced offer terms.
As previously announced (19 November 2019) applications under the current Entitlement Offer closed at 5pm (AEDT), Tuesday 19 November 2019. Subsequent to this the shortfall offer period was opened.
As at today, Friday 22 November, total support for the offer had reached $1.7m including $1.4m in cash applications and a further $300k in commitments to shortfall.
Glenn Fozard, ECT Chairman commented, “Whilst we have received good support from almost 500 existing shareholders over the offer period we have also been working diligently on the insurance claims process, and in parallel evaluating our R&D rebate and financing program as it relates to the proposed upgrades at Bacchus Marsh.
“The net result of this work is that the finance requirement for the proposed upgrades has shifted materially, providing a platform to significantly reduce the cash required to execute the upgrade program.
The Company has informed the ASX that as a result of these new circumstances, it has closed the shortfall period and due to not reaching the minimum subscription will not issue any shares. Application monies will be refunded to applicants.
“The Company will announce a new Entitlement Offer shortly. Importantly, a lower minimum and maximum subscription will reduce the overall dilution impact on shareholders whilst maintaining our full targeted earnings platform through the upgrade program.”
The Company looks forward to providing further updates on the progress of its capital raising program, and preparations for the upgrade project at Bacchus Marsh high volume test facility.
The Company requests the current trading halt be lifted, effective immediately.
For further information, contact:
Glenn Fozard – Chairman email@example.com