Clean Invest Africa Plc - Trading Update
PR Newswire
London, December 6
6 December 2022
CLEAN INVEST AFRICA PLC
("CIA" or the "Company" or the "Group")
Trading update
The Company is pleased to provide the market with a further update regarding its wholly owned subsidiary, Coaltech Limited.
Coaltech continues to seek out commercial terms for the supply of its coal agglomeration plant technology, notwithstanding limited funds available to Coatltech. Lead times on sales are proving extremely long and despite significant investment over a number of years no sales have been achieved thus far. The pipeline nevertheless remains strong, but the Company's success depends upon an eventual conversion of commercial discussions into a commercial contract.
In addition, Coaltech has been seeking to commercialise production on its own account at its Bulpan site in South Africa as announced in July 2022. Commercialisation has not yet occurred and the project has been slower than anticipated due to a number of factors including cashflow, increase in market demand and increase in pricing for coal fines. The project requires certainty of both supply of fines at reasonable prices and secure offtake for its end product. These issues are gradually being addressed and an initial test run of production for a specific client is now imminent.
The Company remains conscious of its financial resources. It has reviewed its strained balance sheet and has agreed in writing with its major creditors, totalling approximately £2.5m, of which, Contax Partners Inc., wholly-owned by Filippo Fantechi, Chief Executive Officer, and certain creditors connected with Contax Partners Inc., account for approximately £1,350,000, that they all will fully subordinate their debt in favour of all other trade creditors, in order to ensure continuing development of the business.
In addition, the Company has agreed to continue to only incur such costs that are absolutely necessary to sustain the business whilst it either generates cashflow from its own production or finally achieves a material commercial contract. The Company is also discussing investment opportunity with potential industrial partners.
Further updates will be provided in due course.
The Directors of the Company accept responsibility for the content of this announcement.
ENQUIRIES:
Company
Clean Invest Africa PLC
Filippo Fantechi - Chief Executive Officer
Telephone: +973 39696273
Corporate Adviser
Peterhouse Capital Limited
Guy Miller
Telephone: +44 20 7220 9795
