Small Shareholding Sale Facility
Environmental Clean Technologies Limited (ECT or Company) (ASX:ESI) is pleased to advise it will be providing a Small Shareholdings Sale Facility to shareholder with a holding of less than A$500 worth of ordinary shares (called a Small Shareholding).
ECT welcomes the support of all its shareholders, however, it incurs administrative costs in producing and distributing shareholding statements, annual reports, notices of meeting and other communications, irrespective of the size of any shareholder. The cost of maintaining shareholder accounts can be disproportionately high when compared with the dollar value of relatively small shareholdings. Hence, ECT has initiated the Small Shareholdings Sale Facility as a convenient and cost effective way for shareholders to sell their Small Shareholding of shares, free of brokerage.
The Company will be writing to all shareholders who hold less than A$500 worth of ECT shares, that the Company is implementing a small shareholding share sale facility (the Small Shareholdings Facility) under clause 3 of the ECT Constitution. The letter will include a Share
Retention form that will need to be completed if the shareholder does not wish to participate in the Small Shareholding Facility.
In the letter to shareholders with a Small Shareholding they will be advised that unless they complete and return the “Share Retention” form to the Company’s share registry by 25th April 2011, then after a second notice the Small Shareholding will be sold pursuant to the Small Shareholding Facility. The shares will be sold on-market and ECT will bear all brokerage and handling fees related to sales under this facility.
If the market value of Small Shareholding increases during the notice period, due to an increase in the ECT share price, so that a Small Shareholding that was previously identified becomes a ‘marketable parcel’ (i.e. their value becomes equal to or greater than A$500) the Company will not sell the relevant shareholders’ Small Shareholding.
Questions regarding the Small Shareholdings Facility should be directed to the Company’s registry, Security Transfer Registrars Limited on +61 8 9315 2333 or the Company on +61 3 9684 0888.
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