Environmental Clean Technologies Limited (ASX: ECT) (ECT or the Company) requested a voluntary suspension in the trading of its securities from the ASX on 15 March 2019 until 1 April 2019.
Further to the announcement made on 22 March 2019, the Company has requested an extension to the current suspension until 22 April 2019.
Since the initial suspension was granted, ECT Executives have remained in close discussions with project partners however the Company has not been able to obtain formal and specific information in relation to completion of NMDC Limited (NMDC) internal processes, the timing of the next NMDC board meeting, or whether the approval of the RCA will be on the agenda for their next meeting.
ECT continue to monitor the situation closely with ECT Executives expected to return to India on 8 April 2019.
The Company is confident that both India partners remain committed to this project and that additional time should be afforded in order to obtain a positive outcome.
The Company acknowledges the complexity of delivering this final partner approval and requests the voluntary suspension remain in place until an announcement can be made regarding these matters. Specifically, the Company will be seeking the following:
- NMDC’s request for extension of the MOU to allow for adequate time to complete their internal processes.
- Agreement to, and signing of, a further MOU extension by NLC India Limited (NLCIL), NMDC and ECT.
- Confirmation from NLCIL that all pre-existing approvals remain on-foot with the granting of the extension of the MOU as per 1.
- Confirmation that the upcoming Indian federal election does not place NMDC or NLCIL into “caretaker mode”.
- Distribution of the final Research Collaboration Agreement, schedules and signing protocol.
- Confirmation from NMDC that all internal processes have been completed (ahead of 7 below).
- Confirmation from NMDC of a date for the next board meeting and their intention to take the project proposal forward for a decision.
Given the material effect this partner approval and associated processes have on the strategic direction of the Company’s activities in India, it is desirable to stay in suspension until more information on the items set out above can be obtained.
The Company will also review and update, where needed, the strategic direction and progress of other key business programs and activities during this period of suspension.
In the Company’s opinion, continued trading of its securities is likely to be materially prejudicial to its ability to complete its major strategic objectives.
The Company looks forward to providing further information as it becomes available.
For further information, contact:
Glenn Fozard – Chairman [email protected]