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ECT restructures board and confirms R&D tax refund

Environment
ASX:ECT      MCAP $14.27M
04 December 2019 17:00 (AEST)

Environmental Clean Technologies (ECT) has updated the market on changes to its board and executive structure.

The company has also announced the Australian Taxation Office has confirmed its research and development (R&D) tax refund of roughly $1.511 million will be paid on December 5 2019.

“The R&D tax incentive program supports innovation, both in terms of the valuable research generated by companies like ours, and innovation around the financing of that research,” ECT Chairman Glenn Fozard said.

The refund is in line with accruals of the 2018/19 Annual Report and repays in full the 2019 financial year $3.6 million R&D loan provided by Brevet, a New York-based financier.

Current Chief Operating Officer Jim Blackburn, has resigned from the role effective on January 3 2020.

Jim has held the role as COO for the past three years, but was appointed Executive Director in September 2019. While he will remain a company Director, he will no longer be part of the executive team.

“We are pleased that Jim is keen to continue to work with us in his board role as we implement our strategy for earnings growth and believe that this restructure puts the company in a compelling position ahead of the next 12 months,” Glenn said.

Jim will also resign as director of ECT Finance once a suitable replacement is identified.

According to the ECT, the resignation gives it the chance to continue its recent work with the executive team and board to refine its structure, function and costs.

The reduction in executive cash costs paves the way for dedicated resources focused on implementing the proposed Bacchus Marsh upgrade project.

The upgrade program is a key priority for the company as it is anticipated to drive positive cashflows and earnings.

Another restructure component is Chairman Glenn stepping into the role of Head of Operations. All other executive roles will stay the same.

“This restructure allows us to ‘right-size’ the operational resources for the next 12 months whilst simultaneously improving our governance rating at the board level through the balancing of two executive directors with two non-executive directors,” Glenn added.

Shares in Environmental Clean Technologies remain flat and trading for 0.2 cents each at 1:48 pm AEDT.

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