Update - New Options Series
Environmental Clean Technologies (ECT or Company) (ASX:ESI) advises that the issue of the Prospectus for the new option series approved by shareholders under Resolution 7 at the AGM on 29 November 2013 will be postponed by several weeks.
The company intends to proceed with the new option series, however given the prevailing market conditions, the pricing of the new options is currently under review and as such, any change in the structure or pricing of the offer will require new shareholder approval at a General Meeting prior to the Prospectus being issued.
While the pricing may change, the eligibility criteria remain the same; Holders of expired options at 16 January 2014 will be eligible to acquire new options on a 1:1 basis, with shareholders also able to apply for an allocation.
On a related matter, the company announced it had signed a non-binding Term Sheet with The Lind Partners and Peloton on 24 December 2013, which included provision for underwriting of the planned new issue of options. This Term Sheet will need to be revised to reflect the abovementioned changes.
A Notice of Meeting and Explanatory Memorandum detailing the revised structure and pricing will be sent to shareholders in due course.
The current option series (ESIO) expired at 5pm yesterday (16 Jan 2014).
Shareholders approved a new option series under Resolution 7 at the AGM on 29 November 2013 with a purchase price of 0.2¢ and conversion price of 1.8¢.
Full details of the previously approved Resolution are available on our website: http://ectltd.com.au/asx-announcements/annual-general-meeting-2013/
For further information contact:
Ashley Moore – Managing Director via [email protected]