ECT Rights Issue Closed
The Environmental Clean Technologies Limited (the Company and ASX Code: ESI) Non-renounceable Rights Issue closed on Tuesday, 27 September 2011.
In a Prospectus lodged with ASX on 26 August 2011 the Company sought to raise approximately $3.8 million before expenses through the non-renounceable rights issue offer of 2 New Shares for every 3 fully paid ordinary shares held at 0.6 cents per New Share. In addition, subscribers were entitled to receive, at no cost, 1 New Option for every 2 New Shares subscribed for.
As at the Closing Date, the Company received valid applications for 135,925,308 New Shares pursuant to the rights issue offer, leaving a shortfall on the offer of 497,408,025 shares. The Company also offered shareholders the opportunity of applying for New Shares from the shortfall, and received applications for an additional 46,645,074 New Shares under the shortfall.
In total, the Company has raised $1,095,422 through the Rights Issue and has an underwriting commitment from Mr Iain McEwin (or entities controlled by him) to subscribe for 16,666,667 New Shares for an additional $100,000. Therefore, the total amount raised to date under the rights issue amounts to $1,195,422 before expenses. The directors will proceed to allot the New Shares and New Options early next week and will advise the despatch of holding statements shortly thereafter.
Managing Director Mike Davies said, “Given current market volatility we are encouraged that approximately 30% of our stated target has been achieved. The Board and management of ECT, is extremely appreciative of the ongoing support of shareholders and very aware of its responsibility to deliver results”
The Directors have received considerable interest from parties regarding subscriptions for New Shares from the shortfall and are confident there will be a significant take-up of New Shares from the shortfall in the 3 months following the close of the offer.
For Further Information Contact:
Mike Davies, Managing Director - 61 3 9909 7684 or [email protected]