Join our daily newsletter At The Bell to receive exclusive market insights
- Environmental Clean Technologies (ECT) has received commitments for a $3.5 million capital raise through a placement and share purchase plan (SPP)
- A general meeting of shareholders is planned for next month to gain approval for the issue of the placement options and other matters relating to the raise
- The funds raised will allow for continued development of its technologies and potential growth within the clean technology sector
- ECT also announced plans to improve its capital structure and, pending shareholder approval, will consolidate its issued capital on a 10-to-1 basis
- The company will also conduct an unmarketable parcel sale facility to rationalise small holdings
- The trading halt was lifted today and shares have dropped 25 per cent to 0.2 cents each
Environmental Clean Technologies (ECT) has received commitments for a $3.5 million capital raise through a placement and share purchase plan (SPP).
The company entered a trading halt last Thursday, after announcing the planned raise.
Now, binding commitments have been received to raise $1.5 million dollars, through the issue of 1.5 billion fully paid ordinary shares to sophisticated and professional investors at 0.1 cents each.
Additionally, pending share holder approval, for every three shares issued, ECT will issue one free attaching listed option with the same terms as the existing listed options on issue, each exercisable at 0.3 cents and expiring in February 2023 with an ASX code.
Existing shareholders haven’t been forgotten. Australian and New Zealander residents who hold shares in the company since 5pm yesterday, will be able to purchase up to 15,000 new shares at 0.16 cents each.
This share purchase plan is expected to raise an additional $2 million via the issue of up to 1.25 billion shares.
A general meeting of shareholders is planned for next month to gain approval for the issue of the placement options and other matters relating to the raise.
ECT said the funds raised will allow for continued development of its technologies and potential growth within the clean technology sector.
More specifically, the company intends to use the funds to complete phase one and two of its Coldry-Char project at Bacchus Marsh, and focus on two additional initiatives which extend from the work at Coldry-Char.
Chairman Glenn Fozard commented on the new initiatives.
“We will be looking to fast track the development of our hydrogen technology, COHgen, allowing us to start actively participating in this emerging industry with what we believe will be a best of breed, low-emission solution, enabling lower cost lignite-based Carbon Capture and Storage (CCS) hydrogen production,” he said.
Kaii Capital has been appointed as lead manager to the placement and will receive six per cent of the amount raised under the placement and SPP short-fall.
Kaai has said it will donate $15,000 of the expected fees to Australian-registered, charitable-deductible gift recipients.
Further to the raise news, ECT announced that Euclase Capital will act as Corporate Advisor to advise on strategic and cornerstone investors, assist with the development of feasibility studies and advise on business and corporate development opportunities.
Lastly, ECT plans to improve its capital structure and, pending shareholder approval, will consolidate its issued capital on a 10-to-1 basis.
Further to this, the company will also conduct an unmarketable parcel sale facility to rationalise small holdings.
Shares are down 25 per cent at 0.2 cents each at 12:59 pm AEST.
