+++++++++++++++++++++++++ The Directors of EnviroStar Energy Limited are pleased to announce the appointment of a new Chief Executive Officer, Mr Malcolm Carson.
Mr Carson has experience in managing public companies and holds graduate and post-graduate degrees in Science and Natural Resource Management. He has worked in the resources sector for more than 25 years and has a unique depth of experience and skills, which cover all aspects of the resources sector from technical, to resources development at the State/Corporate level and investment banking.
During the massive re-emergence of the gold industry from the mid 1980's to the late 1990's Mr Carson was an investment banker for major Australian financial institutions including Rothschild and Bankers Trust Australia where he was responsible for the project financing of a number of large gold mines, treasury and corporate finance matters.
The Board has confidence in Mr Carson having the ability to take EnviroStar into its future as a leader in green energy projects in Australia and to enhance its competitive edge.
Mr Carson said, "I am enthusiastic about joining a company with a viable ethical/environmental technology, at the launching pad of a growing sector and with a competitive advantage. Furthermore, EnviroStar is in a position to make a positive contribution to the well being of current and future generations. In my view the growth opportunities for EnviroStar are extraordinary."
"We are looking to a future in which shareholders can enjoy robust expansion and sustainable growth, without dilution to shareholder value."
For further information, see our website (http://www.envirostar.com.au) or contact Malcolm Carson.
+++++++++++++++++++++++++ ENVIROSTAR ENERGY LIMITED - 1 FOR 1 OPTION ISSUE FOR EACH SHARE SUBSCRIBED UNDER CURRENT RIGHTS ISSUE & CURRENT FINANCIAL STATUS
OPTION ISSUE
The board of directors of EnviroStar Energy Limited have approved the issue to subscribers under the Company's current rights issue of 1 free option for each share subscribed.
The options are proposed as the directors wish to reward shareholders in subscribing for shares under the Company's rights issue, given that the current market price for the Company's shares is less than the rights issue subscription price of 20 cents per share.
The issue of the options will be the subject of approval at the Company's next annual general meeting, which is anticipated to be held in November 2002.
The options will be issued to qualifying persons following the close of the current rights issue and shareholder approval and will be accompanied by a prospectus as required by the Corporations Act 2001. The Company will also issue a supplementary prospectus to shareholders in respect of the current prospectus for the rights issue.
The options will have the following terms:
1. Each option will entitle the holder to subscribe for a fully paid ordinary share in the Company.
2. Each option is to be issued for no consideration and will have an exercise price of 15 cents per share.
3. The options must be exercised by holders, in whole or in part, by 31 December 2003.
It is the intention of the directors that the options be separately quoted and capable of being traded on the Australian Stock Exchange.
In summary:
* This issue means that for every new share acquired by subscribing for shares under the rights issue, shareholders will receive a free option to acquire another new share in EnviroStar for a price of 15 cents.
* The option will be valid until the 31st December 2003, which means that shareholders who have received these options will have until that date to acquire the new share.
* EnviroStar will apply to the Australian Stock Exchange to have these options listed. In the event such listing is approved, option holders will be able to trade their options prior to the expiry date. The directors consider that the options are likely to qualify for listing.
FINANCIAL STATUS OF THE COMPANY
EnviroStar has sufficient Working capital to meet its day-to-day requirements. In addition the Company has secured a Seven Million Dollar ($7,000,000) convertible facility with the US based GEM Global Yield Fund. The first draw down notice issued under this facility occurred on 5th June 2002. Further draw downs are subject to shareholder approval, which is being sought at the EGM dated 22 July 2002.
Shareholders will recall that the GEM facility is linked to the share price in that the draw down conversion price is calculated over a period of 15 days following the notice.
In view of the convertible nature of the GEM facility, EnviroStar's directors initiated the rights issue, which closes on 19 July 2002, so as to give shareholders the opportunity to acquire new shares in the company to minimise dilution. The rights issue, if fully subscribed, would raise $5.76 million.
In summary there are 2 sources of funds currently available to the Company, namely:
1. Draw down under the $7 million GEM facility
2. Funds from shareholders subscribing to the rights issue (maximum $5.76 million)
In addition to these funding sources, Envirostar is in advanced negotiations with substantial financial institutions for debt finance.
The funds from these will be advised directly to EnviroStar's green power generation projects.
For further information, see our website (http://www.envirostar.com.au or contact Malcolm Carson.
SUPPLEMENTARY PROSPECTUS ENVIROSTAR ENERGY LIMITED
NATURE OF THIS SUPPLEMENTARY PROSPECTUS
This is a Supplementary Prospectus which supplements the Prospectus dated 17 May 2002 relating to the 1 for 2 rights issue by EnviroStar Energy Limited ACN 004 119 304. This Supplementary Prospectus is a supplementary prospectus for the purposes of Part 6D.2 of the Corporations Act 2001. It is dated 8 July 2002 and was lodged with ASIC on that date.
This Supplementary Prospectus must be read together with the Prospectus and terms defined in the Prospectus have the same meanings in this Supplementary Prospectus.
OFFER OF OPTIONS
The Company announced on 5 July 2002 that the board of directors of the Company had approved the issue to subscribers under the Company's Rights Issue of 1 free option for each share subscribed.
The directors also reserved the right to issue an appropriate number of options to shareholders who have traded their rights to subscribe shares in the Rights issue, to compensate those shareholders to the extent of any loss they may have suffered.
The issue of the options will be the subject of approval at the Companys next annual general meeting, which is anticipated to be held in November 2002.
The options will be issued to qualifying persons following the close of the Rights Issue and shareholder approval and will be accompanied by a prospectus as required by the Corporations Act 2001.
The options will have the following terms:
1. Each option will entitle the holder to subscribe for a fully paid ordinary share in the company.
2. Each option is to be issued for no consideration and will have an exercise price of 15 cents per share.
3. The last date to exercise the options, in whole or in part, is 31 December 2003.
It is the intention of the Company that the options be separately quoted and capable of being traded on the Australian Stock Exchange.
EFFECT ON THE PROSPECTUS
The proposed issue of the options has no direct effect on the Rights Issue or the Prospectus. However, were some or all of the options to be exercised that would have the effect of increasing the number of shares on issue in the Company. By way of example only, if subscribers were to take up all of the shares offered under the Rights Issue (being 28,809,945 shares), and no shareholders were entitled to any compensatory options, then 28,809,945 options would be issued allowing the holders of the options to subscribe for that number of shares in accordance with the terms of the options.
INVESTOR RIGHTS
In accordance with the Corporations Act 2001, applicants for shares under the Prospectus at the date this Supplementary Prospectus is issued have one month to withdraw their application and be repaid their subscription monies.
FURTHER INFORMATION
For any further information concerning this Supplementary Prospectus or the offer generally, please phone EnviroStar on (+612) 9232 0788 or by email on [email protected].
Signed in accordance with section 351 of the Corporations Act 2001 and in accordance with a resolution of the directors of EnviroStar Energy Limited by:
C Coudounaris DIRECTOR
ENVIROSTAR ENERGY LIMITED 2002-07-08 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++ Mr James Kwok has today tended his resignation as Chief Executive Officer of the company. Mr Kwok is now in a position to spend more time with Energy Equipment Australia, EnviroStar's EPC contractor at Stapylton and Morwell. In this regard he will be directly involved in the completion and further development of the Company's green energy projects.
Further enquiries please call EnviroStar on: Telephone Number: (+612) 9232 0788 Facsimile Number: (+612) 9232 0799
