Environmental Clean Technologies Limited (ASX: ESI) (ECT or Company) provides the following update to shareholders:
- Non-Executive Directors Remuneration
- Monash status
- ALDP status
Share-Based Director Remuneration
Directors have elected to forego the share-based remuneration component for the 2012/13 financial year.
The basis for the share-based remuneration, approved under Resolution 9 at the AGM held on 29 November 2012, provided $25,000 Non-Executive Directors’ annual remuneration and $50,000 of Chairman’s annual remuneration to be satisfied in ordinary shares calculated on a quarterly basis.
Based on the approval given by shareholders at last years AGM, Chairman Mike Davies and Non-Executive Directors Stephen Carter and Iain McEwin are eligible to receive a collective 9.3 million shares for the 2012/13 financial year.
ECT Chairman Mike Davies acknowledged the decision by the Board to forego their shares for the 2012/13 financial year commenting, “The decision clearly demonstrates that this Board continues to place the interests of all stakeholders above short-term considerations,”
ECT Managing Director Ashley Moore stated, “The Company has achieved significant progress in relation to its key objective of delivering the necessary ‘construction-ready’ engineering outcomes in support of Coldry commercialisation. While the Board is confident this work positions the Company to execute a demonstration project, we recognise the impacts of ongoing capital management activities on sentiment and share price.”
The Board recognise two key aspects impacting sentiment have been the delays experienced with Monash Capital Group and uncertainty around timing and outcomes relating to our application for grant funding under the joint State and Federal government Advanced Lignite Demonstration Program (ALDP).
Monash Capital Group
Monash continue to progress, and the Company continues to support, their wholesale capital raising programs with the intent to deliver $6 million equity and significant funding to the Coldry demonstration plant.
The ALDP is subject to strict confidentiality. We refer interested parties to the ALDP website* for its current status and provide the following outline of the expected next stages under the program. Please note that ECT has not received any indication from the Government on whether it will be selected for funding under the program.
Confidential offers: According to the ALDP website, the selection phase is expected to be finalised shortly. This will see confidential offers made to preferred applicants.
The original indicative timetable set by the government provided for confidential offers to be made around mid-June 2013.
If ECT receives an offer it cannot announce such, as the offer will be non-binding and incomplete until the funding agreement is signed and the Minister’s announce successful applicants.
Funding Agreement negotiation: The confidential offer initiates grant funding agreement negotiations and are targeted to conclude within 90 days of offers being issued.
Private financial close: Following the signing of grant funding agreements with the Government, successful grant applicants will have a period of time to conclude financial arrangements for the privately sourced component of project funding.
Based on the ALDP project timeframe, this period concludes 180 days following the original confidential offer.
- If ECT receives confirmation that no offer will be made under the ALDP, an announcement will be made immediately and alternative plans outlined.
- A lack of announcement should not be taken as a sign that ECT has received an offer as ALDP timeframes can change at the government’s discretion and without notice.
The Board is cognisant of the impact on all stakeholders of the challenging conditions and will continue to work toward the key objective of Coldry commercialisation to deliver fundamental shareholder value.
For further information contact:
Ashley Moore – Managing Director +61 3 9909 7684 or [email protected]