Environmental Clean Technologies Limited (ASX:ESI) advises documentation to establish the three year convertible note facility with Pacific Capital Value Fund (PCVF) was executed on 18 November 2008; however PCVF processes have delayed ECT receiving funds and issuing the first tranche of convertible notes.
As a result, a drawdown on the Fortrend Equity Line of Credit will be made to assist the company meeting essential operational expenditure prior to the funds from tranche two of the PCVF facility becoming available.
ECT Chief Executive Kos Galtos said he was frustrated that there had been delays given that the subscription agreement for the convertible notes was signed several weeks ago, but the strong support given by shareholders and alliance partners was reassuring.
“While the delay in Pacific Capital Value Fund acknowledging completion of all conditions precedent is disappointing, I am confident the process will be finalised this week and transfer of the first tranche of funds will be facilitated before Christmas. Once the processes have been established by PCVF, this will facilitate ready access to all future tranches,” Mr Galtos said.
“We are, nevertheless, focusing on the planning for commencement of the 150,000 t.p.a. Coldry production plant with the knowledge that we have achieved solid cost cutting outcomes and will soon have funds available for our short to medium term operations.”
For further information contact ECT Chief Executive Kos Galtos on +61 3 9909 7684.