Environmental Clean Technologies Limited (ASX: ECT), a company from the commercial and professional services which is into the business of reducing carbon emission and ecological damage by investing and licensing commercially practical and environmentally cleaner technologies and processes announced the status of its India project to its shareholders.
ECT shares were under the trading halt on 9 January 2019, to allow that the company to derive an update from one of its project partners NMDC Limited post their meeting on 8 January 2019 regarding the Research Collaboration Agreement (RCA) approval.
Once the company receives approval from the board of NMDC, who the final partner, it will proceed to the financial close and formally commence its India project.
The company already received a green signal from its first partner NLC India Limited (NLCIL) for the Research Collaboration Agreement commercial terms on 14 November 2018.
As per the recent update, NMDC advised ECT that during the meeting all other agenda items including the RCA approval were missing during the decision and NMDC recommended ECT that their single purpose agenda is the Share Buy-Back Program of NMDC. As a result, ECT and the other project partner together is in contact with Mr. N. Baijendra Kumar for past two days, and now the project proposal is taken forward for approval by the end of January 2019.
Jim Blackburn who is the Chief Operating Officer of ECT highlight’s their clarity and management direction over the planning and execution of the project. However, he finds the administrative board processes for large and complex PSUs and not within their control and also frustrating when all parties are committed towards the project. However, he is optimistic that they will soon receive a response from NMDC.
He addresses his shareholders to have a little more patience as they are heading towards the final formalities and their India team is also working tirelessly to ensure all the parallel activities in advance so that the project may commence following the closure of the financial year 2019.
Glenn Fozard who is the chairperson of ECT stated that the shareholders are disappointed with the missed deadlines by the Indian partner in spite of the positive discussions because a small delay impacts the confidence of the company as well as the market sentiment. Now, the board had made it clear to the Indian partners that any further unexpected delay may lead to severe implication and ECT would find it difficult to continue further with the project.
The official listing of ECT on ASX is 5 February 1986 where the performance of the company remains -63.33%. In 5 years, the performance of the company was 83.33%. In last one year, the performance of the company was 22.22%.
By the end of trading on 11 January 2019, the shares traded almost flat on ASX. The closing price of the share was A$0.011 which is close to 52 weeks low price with the stock holding a market capitalization of A$52.81 million.
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