Shareholder Update – EGM Results and Presentation

Dear Shareholders,

The Company held a General Meeting today per the Notice of Meeting sent out on 23 July 2013.

The meeting dealt with capital management and corporate governance matters and the election of Mr. Glenn Fozard as a non-executive Director. All resolutions were passed and the results of the meeting were released via the ASX earlier today and summarised as follows:

Resolution

For

Against

Discretionary

Abstain

1. Ratification of prior issue of securities

221,560,801

1,982,825

2,935,471

9,000

2. Approval of new issue of shares

218,557,826

4,985,801

2,935,471

9,000

3. Approval of Non-Executive Director Remuneration Policy

216,598,577

6,232,050

2,935,471

722,000

4. Election of Mr Glenn Fozard

221,146,269

853,918

2,935,471

1,552,440

Background

The successful demonstration of ECT’s Coldry technology is currently the key objective of the Company and is the gateway to commercial deployment and revenue generation. Revenue is the key to delivering fundamental shareholder value.

Engineering development for the Coldry demonstration plant has followed a methodical, iterative process to deliver the increasing levels of accuracy and certainty around cost estimates necessary to attract the capital required to execute the demonstration project.

Working with Arup, we have delivered ‘construction ready’ design and engineering outputs announced recently, positioning the Company to advance the Coldry demonstration plant subject to external funding drivers.

Resolutions

In support of the above, shareholders approved the prior issues of Shares to enable the Company to refresh its capacity under Listing Rules 7.1 and 7.1A for new issues of securities without Shareholder approval. This is a key capital management tool and essential to providing your Board with the flexibility necessary to deliver outcomes in line with the above objective.

In addition, Shareholders approved the issue of Shares upon the progressive conversion of the Arup Bond. The face value of the Bond, including its extension announced on 5 July 2013 is $3,900,000. A total face value of $2,500,000 has to date been issued and the Company has received conversion notices for part of the Bond, totaling $1,500,000 at the issue of the Notice of Meeting and $2,450,00 as at close of business yesterday. This conversion is on the terms outlined in the ASX announcements dated 21 November 2012 and 5 July 2013.

The Bond has been issued in consideration for the work undertaken by Arup to deliver the design and engineering program and the ‘construction ready’ engineering works associated with the development and delivery of the Coldry demonstration plant.

Finally, Shareholders elected Mr. Glenn Fozard as a Director following his appointment to the Board on 17 July, 2013 and formally approve the Board’s policy pertaining to the engagement and remuneration of non-executive Directors in the provision of additional services or special exertions by them beyond their normal services as non-executive Directors.

Following the formal business of the meeting I presented a general update covering:

  • CDP Design update
  • India overview:
  • Country, Development & Infrastructure
  • Power & Resources
  • Coldry & Matmor

The presentation was released via the ASX at the beginning of the meeting and is available for download here: General Update (PDF)

We thank the shareholders who found the time in their busy schedules to attend todays meeting and for the many more who voted in support of todays resolutions.

Regards,

Ashley Moore
Managing Director