Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) wishes to advise the completion of a capital raising program to raise short term funding.
Interim Funding Measures
The Company has finalised a “FAST Finance” loan of $1,700,000 and placement of $506,515 managed through Greenard Willing and Platinum Road. The FAST Finance loan is an advance against the expected R&D tax concession due in October-November 2013.
The Board believes that this is a reasonable source of short-term finance and an appropriate arrangement.
The key terms of the FAST Finance loan are as follows:
- Term: 12 months
- Repayment: Cash in full from the R&D tax rebate refund
- Interest Rate: 15% p.a. payable upfront
The key terms of the placement are as follows:
- Average of the 3 daily VWAP prior to settlement x 80%
Mr Michael Davies, Executive Chairman said “We appreciate the patience of our shareholders as we work with Monash Capital on our longer-term funding to ensure the best interests of both parties are accommodated. In the meantime, these interim funding measures will allow us to maintain the momentum of the Commercial Demonstration Plant (CDP) delivery program, and ongoing operational funding.”
A further update on the status of the DFT will be released in coming weeks.
2012 FAST Finance loan satisfied
This loan has been satisfied via a combination of cash repayment and issuance of ECT securities. The 2012 FAST Finance loan has been repaid in full.
Status of Monash Capital Share Placement Settlement
The ‘Monash Capital’ funding program approved under Resolution 6 at the Annual General Meeting on 29 November 2012 is progressing. The Company will make a further announcement as outcomes are reached.
The Company requests a lifting of the trading halt requested on 31 January 2013.
For further information contact:
Media & Investor enquiries: Mike Davies – Managing Director +61 3 9909 7684 or [email protected]