Update on Proposed Waste-to-Energy Technology Acquisition and Request to Extend Suspension
Environmental Clean Technologies Limited (ASX: ECT) (ECT or Company) provides the following update on its proposed waste-to-energy (WTE) acquisition and requests a continuation to the suspension of trading in its securities through to 10 am Thursday 4 July 2019.
- Proposed Waste-to-Energy acquisition currently under due diligence
- Parties have extended the exclusive due diligence period by 14 days to 26 June 2019
- Completion date set for 3 July 2019 unless completed earlier
Background to Voluntary Suspension
The Company is currently in Voluntary Suspension for two, separate pending outcomes:
- India project consideration by project partner NMDC
- Proposed WTE acquisition, currently under due diligence
The Company refers investors to its announcement of 7 June 2019 for the background and status of the India project and the proposed WTE acquisition.
The Company’s recently appointed Chairman & Managing Director of ECT India and the Chairman of ECT Limited are meeting with senior executives from NMDC Limited in India during the week commencing 17 June 2019.
In relation to the WTE acquisition, ECT entered into a binding Heads of Agreement (HoA) with liquidators McGrath Nichol, for the acquisition of assets of the CDP Group of companies. The HoA sets out the proposed terms of the transaction, subject to a 4-week exclusivity period through which detailed due diligence is progressing.
As at the time of this release the parties are yet to complete the due diligence process and, per the 7 June announcement, have agreed to a 14-day extension. The completion date is expected to be 3 July 2019 unless the transaction is completed earlier.
ECT will provide further announcements as required.
For further information, contact:
Glenn Fozard – Chairman [email protected]