Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following quarterly activity report and Appendix 4C.
Quarterly Activity Report – 1 April to 30 June 2020
At the beginning of the quarter the Company was nearing completion of its raising capital, the funds from which would assist with the rebuild of its Bacchus Marsh facility which was substantially destroyed by fire in October 2019.
In March 2020, the Company’s Business Continuity Plan (BCP) was activated in response to the COVID-19 pandemic. The planned impact of this was a material reduction in expenditure during the quarter ended 30 June 2020.
The Company continued to work towards completing the detailed design and engineering specifications required to commence construction at Bacchus Marsh which also included sourcing suitable suppliers and contractors.
The Appendix 4C summarises the cash flows for the previous quarter which were not materially different to prior quarters other than:
- Insurance proceeds received from the insurance claim in relation to the fire at the Bacchus Marsh facility reduced from $1.1M to 130K. The claim is not yet complete and further proceeds are receivable after construction commences.
- Administration and corporate costs reduced from $575K to $270K, and staff costs reduced from $189K to $82K, and research and developments costs reduced from $368K to $69K. All these reductions were due to the Company activating its BCP which saw a significant reduction in overall expenditure.
- Proceeds from the issue of equities reduced from $1.68M to $63K as the Company’s non-renounceable rights issue was largely completed by the end of the previous quarter. Transaction costs associated with the capital raising reduced accordingly compared to the previous quarter.
- Repayment of borrowings from the quarter ended 30 June 2020 was $419K compared nil the previous quarter as the Company repaid its loan facility with Innovation Structured Finance Co.
Cash on hand at the end of the quarter was $1.105M compared to $1.775M at the end of the prior quarter.
The Company’s Appendix 4C was lodged on 22 July 2020.