InvestVictoria R&D Loan – Second Draw

InvestVictoria R&D Loan – Second Draw

Environmental Clean Technologies Limited (ASX: ECT) (“ECT” or “Company”) is pleased to provide the following update on the status of its R&D Loan facility provided by InvestVictoria, a business of the Victorian State Government.

Key points:

  • Second draw of $788,000 received from InvestVictoria
  • Loan facility of $1,968,000 is now fully drawn

InvestVictoria R&D Loan

In line with previous announcements, the Company is pleased to announce it has received its second draw of $788,000 from the $1,968,000 R&D loan facility with InvestVictoria, for FY22.

This loan facility allows the forward factoring of accrued R&D Tax Incentive refunds, providing flexibility to the capital management plan by delivering cashflow when required, rather than waiting until after the tax return is lodged each year.

About the InvestVictoria R&D Cash Flow Loan

The R&D Cash Flow Loans program provides low-interest loans of up to $4 million, for a period of between 12-28 months, to innovative Victorian SMEs that meet certain eligibility criteria including:

  • The Company must qualify for the Commonwealth Government’s R&D tax incentive plan
  • The Company must demonstrate compelling potential for R&D in Victoria, meeting at least two of the following scenarios:
    • expected to lead to meaningful growth in R&D in Victoria
    • expected to lead to meaningful job creation in Victoria
    • expected to fund meaningful expansion of R&D operations into Victoria
    • headquartered in Victoria.

Managing Director Glenn Fozard noted:

“The InvestVictoria loan provided by the Victorian State Government continues to provide valuable non-dilutive cash flows for the business. Additionally, the savings of over $100,000 in interest expense is being re-directed into further R&D.

This announcement is authorised for release to the ASX by the Board.

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For further information, please contact:

INVESTORS

Glenn Fozard
Managing Director

[email protected] / +613 9849 6203

MEDIA

Adam Giles
Marketing & Communications Manager

[email protected] / +613 9849 6203