Ann: Shareholder Update - Capital Management, page-3

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IronKing2010

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09/01/15

10:27

Post #: 14558637
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Originally posted by prolifix ↑

Friday, 9 January 2015: Environmental Clean Technologies Limited (ASX:ESI and ECT or
Company) provides the following update on capital management and planning activities.
Key points:
! Fast Finance Covenant condition eliminated
! Options Exercise Mandate issued
In anticipation of advancing its previously announced objectives in India in relation to the
development of both its Coldry and Matmor technologies, the Company has finalised elements of
its capital management planning activities.
These activities are aimed at ensuring the Company is prepared for success and include the
following:
(1) Fast Finance Covenant
The recent arrangements regarding the Company’s Fast Finance Facility (ASX announcement 31
October 2014) included a requirement to demonstrate to the financier that forecast R&D
expenditure, and the subsequent expected rebate, was sufficient to cover the facility.
With the recent acquisition of Matmor assets (ASX announcement 4 December 2014), the financier
is satisfied the expected R&D rebate due later this year will satisfy the obligation.
In addition, the Company believes the acquisition of the Matmor assets materially underpins future
R&D claims into 2016, in alignment with the Company’s 2-year Matmor development program,
providing further cashflow to the business.
This assessment satisfies the Covenant in the Fast Finance agreements, which is in the best
interests of shareholders.
(2) Options Exercise Mandate
The Company has appointed Platinum Road to manage an options exercise program. Such a
program is designed to provide a mechanism, under appropriate market conditions, for the
proactive facilitation and conversion of Options to deliver capital inflows in support of the
Company’s objectives. Such appropriate market conditions may include the delivery of shareholder
value through advancing its technology development objectives in India.
The mandate provides the terms and conditions under which the program may be executed and
will be assessed on a regular basis, with the Company maintaining directional control over the
terms to ensure market competitive services are delivered and shareholder value maximised.
Platinum Road Managing Director Dr David Menzies said “The Matmor acquisition is a significant
accomplishment for ECT, instilling a level of confidence in the company’s approach to advancing
the Coldry and Matmor technology platforms and we look forward to supporting their further
commercialisation efforts ”

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I like this paragraph.. The board has fully confidence of the options will be in the money soon. It says "" options to deliver capital cash flows ""

The Company has appointed Platinum Road
to manage an options exercise program. Such a
program is designed to provide a mechanism,under
appropriate market conditions, for the proactive facilitation and conversion of Options to deliver capital inflows in support of the Company’s objectives.
Such appropriate market conditions may
include the delivery of shareholder
value through advancing its technology development objectives in India.

ESI Price at posting: 0.8¢ Sentiment: Buy Disclosure: Held
16 Upvote

0 Great analysis

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