Prospectus – New Options and Bonus Options

Environmental Clean Technologies (ECT or Company) (ASX: ESI) is pleased to announce the issue of a new options series (ESIOA) (New Options Issue) and bonus options series (ESIOB) (Bonus Issue).

Summary of New Options Issue

  • The issue of new options (ESIOA) (New Options) at an issue price of 0.1 cents to eligible optionholders, eligible shareholders, new investors and the directors and employees of ECT.
  • Eligible optionholders may take up their entitlement to the New Options.  Eligible shareholders, new investors and the directors and employees of ECT may apply for New Options.
  • The Options Issue is not extended to persons with registered addresses outside of Australia and New Zealand.
  • A New Option (ESIOA) entitles the holder to exercise the option for a fully paid ordinary share (ESI) in ECT at an exercise price of 0.9 cents at any time prior to 5.00 pm on 31 July 2017.
  • If all New Options are subscribed for, the maximum amount of funds that may be raised by the Company is approximately $1.4 million (less associated costs and expenses).  In addition, if all New Options are exercised, the maximum amount of funds that may be raised by the Company is approximately $23.5 million (less associated costs and expenses).  The net proceeds raised from the issue and exercise of the New Options will be applied to the commercialisation of the Company’s technologies, fund ongoing research and development and provide working capital to meet operational expenses.
  • Pre-commitments and underwriting to the Offer from Investors, Members of the Board and the Company Secretary of ECT total (up to) $505,000.

The New Options will be offered to eligible optionholders, being persons who were registered holders of the expired options series (ESIO) as at 5.00 pm on 16 January 2014.

The New Options will also be offered to eligible shareholders (being holders of ESI on 8 July 2014), new investors and the directors and employees of ECT.

Summary of Bonus Issue

  • The issue of bonus options (ESIOB) (New Bonus Options) to eligible shareholders on a one (1) for three (3) basis for no consideration.
  • The New Bonus Issue is not extended to persons with registered addresses outside of Australia and New Zealand.
  • A New Bonus Option entitles the holder to exercise the New Bonus Option for a fully paid ordinary share in ECT at an exercise price of 1.5 cents at any time prior to 5.00 pm on 31 July 2017.
  • No monies will be raised from the Bonus Issue.  If all Bonus Options are exercised, the maximum amount of funds that may be raised by the Company is approximately $10.9 million (less associated costs and expenses).  The net proceeds raised from the exercise of the New Bonus

Options will be applied to the commercialisation of the Company’s technologies, fund ongoing research and development and provide working capital to meet operational expenses.

The New Bonus Options will be issued to eligible shareholders, being persons who are registered holders of shares in the Company at 5.00 pm on 31 July 2014.  Eligible shareholders do not need to do anything to receive New Bonus Options under the Bonus Issue.

Background

Shareholders have approved the issue of:

  • new options with a purchase price of 0.1 cents and an exercise price of 0.9 cents under resolutions 1 and 2; and
  • bonus options for no consideration and an exercise price of 1.5 cents under resolution 3,

at the General Meeting held on 30 May 2014.

Full details of the approved Resolutions are available on our website: http://www.ectltd.com.au/asx-announcements/notice-of-meeting-2/.

Support for the Offer

The Directors have arranged for various forms of support for the Offer.  Pre-commitments to purchase 275,000,000 New Options have been received and accepted by the Company.  The pre-commitments will be drawn from the pool of additional New Options approved by resolution 2 at the 30 May 2014 Extraordinary General Meeting.  These New Options are not available under this Offer.

In addition, the Directors and Company Secretary are providing financial support to the Offer.  In particular, those of the Directors who are Eligible Optionholders have committed to take up their full Entitlement to New Options. Members of the Board and their Company Secretary have agreed to apply for additional New Options and to partially underwrite the Offer by subscribing for New Options up to the value of $90,000 if there is a shortfall.  Their total commitment if fully drawn will be $230,000.

The sum of the pre-commitments and underwriting is $505,000.

 

For further information contact: Ashley Moore – Managing Director – info@ectltd.com.au 

Download (PDF): Prospectus – New Options and Bonus Options

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