AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
ECT Finance Limited (ECTF), a subsidiary of ASX listed Environmental Clean Technology Limited (ASX:ECT), has inked an agreement to provide security for A$1 million loan that it has applied to the loan portfolio of equity lending facility.
In July 2017, ECTF executed the equity lending facility (ELF) for the conversion of options into shares via the issue of limited resource loans secured against the shares. The company has adopted this method of financing to minimise the requirement for fresh equity raising while maintaining the flexibility of ELF loan and security book.
As per todayâs announcement, proceeds from A$1Â Â
As per the todayâs announcement, ECTF will utilize the loan proceeds to partially clearly off the wholesale loan balance outstanding from ECT. Subsequently, it will assist ECT to fund the expenses relating to operations and capital works to be taken in Victoria and India commercial projects.
ECT Finance Chairman, Jim Blackburn commented, âThe companyâs current balance of ~A15.54 million wholesale loan and an existing security value of A$15.62 million reflects the significant opportunity for the company to bring forward loans repayment via this method.â said that the company is constantly looking forward to the alternative options where current loan book can be securitised ahead of individual repayments.
The company stated that the wholesale loan balance to ECT will be A$14.54 million post securitisation loan fully drawdown. Whereas, security backing is expected to reach approximately A$15.45 million, from current A$15.62 million.
The management believes that this type of lending method may also be relevant when it the company would have to fund the cash component of the AUD 3.5 million project bond for its India project. The timeline for this is expected to fall after the signing of the Research Collaboration Agreement (RCA) and before the initial funding by its project partners, expected in coming months.
Mr. Blackburn told its shareholders that there are sufficient alternatives available with the company to furnish the needs of the India project bond and to ensure that equity capital raisings are the last option that it will take.
About India Project: India Project is the companyâs research and development project that aims at advancing ECTâs production technologies- Coldry and Matmor. For this purpose, ECT has partnered with Indiaâs national lignite authority-NLC India Limited, and Indiaâs national iron ore authority-NMDC Limited to fund and execute the project jointly. Both the authorities will together contribute approximately AUD 30 million in capital funding which will be aligned by ECT through the issue of bond.
In todayâs trading session, the stock of Environmental Clean Technology Limited traded flat. However, 706,828 shares changed hand on 7 December 2018. ECT stock last traded at $0.012.
Looking to the past performance of the company, we can see there has been decent improvement in the stock price of the company. Its because ECTâs share price has gone up by 9.09% over the past one year but to the contrary, it has fallen by 14.29% in the past three months as at 7 December 2018.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
