Sustainable resource developer Greenpower has been told off by the ASX after failing to disclose the results of a grant application earlier this month.

Greenpower (ASX:GPP) had put its hand out for a $2 million Federal grant to continue to develop its proprietary coal to chemicals technology, but despite receiving the result on December 6, the company failed to notify the market until two days later.

The update sparked an ASX aware query which noted the company’s share price movement from 1.9c on December 6 to 1.7c the following day – a 10.5 per cent drop – and an increase in the volume of securities traded.

Shares in the company opened at 1.6c on Wednesday.

GPP share price movements over the past 3 months. Source:
GPP share price movements over the past three months. Source:

But Greenpower says the result of the application has no bearing on its future progress.

“GPP plans to build a process demonstration unit (PDU) and its plans to carry out field trials of its plant growth bio-stimulant continues unaffected,” they said in their reply.

“There is a clear implication that there will be no change in GPP’s present position as a result of the decision.”

They say of 70 applications, only 15 were granted – but that it won’t stop them from applying for other grants in future.

“GPP is confident its application had demonstrated a clear industry identified problem and a well thought-out strategy to provide a solution, that its management team and governance structure was strong, as was the project’s ability to contribute to capability and capacity-building by researchers and industry organisations,” they said in their initial statement to market.

“GPP is encouraged to think that in a future funding round, an application which includes its soon to be received marketing report will be more successful.”

The company is working to commercialise its green coal technology Oxidative Hydrothermal Dissolution (OHD) that converts any solid biomass into a liquid of organic chemical compounds.