REG - Enteq Technologies - Conclusion of FSP, Corporate & Sale Process Update

Enteq TechnologiesAnnouncement

25/04/2025 10:30

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RNS Number : 2457G  Enteq Technologies PLC  25 April 2025

25 April 2025

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INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 (AS AMENDED) AS IT FORMS PART OF THE
DOMESTIC LAW OF THE UNITED KINGDOM BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 (AS AMENDED) ("MAR"). WITH THE PUBLICATION OF THIS
ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC
DOMAIN.

 

Enteq Technologies plc

("Enteq" or the "Company")

 

Conclusion of the Formal Sales Process, Ongoing Process for the Sale of the
Business, Assets and IP, Corporate and SABER Update

 

Enteq Technologies plc (AIM: NTQ.L), the energy services technology and
equipment supplier, announces the conclusion of the formal sales process which
was announced on 20 January 2025 (the "FSP") following a review of the
progression on the FSP.

Update on Formal Sales Process

The Company announced on 20 January 2025 that it had commenced a FSP under the
Takeover Code (the "Code"). The FSP was undertaken to investigate whether
parties could put forward a proposal that would deliver greater value
to Enteq's shareholders than pursuing its current standalone strategy and
result in the acquisition of the entire issued share capital of the Company
and its group.  The Company engaged with a range of parties during the
process. Based on outreach, dialogue and discussions to date, the board of
directors of the Company (the "Board") does not believe there is a realistic
prospect of an offer for the issued, and to be issued, share capital of Enteq
being forthcoming in the near term and after careful consideration, the Board
does not believe that there is merit in continuing the FSP at this juncture.
The Board intends to engage with parties that are interested in the
acquisition of the business, assets and IP within the Enteq group outside the
auspices of an FSP. Negotiations with any interested parties will focus on
maximising value from Enteq's business, assets and Intellectual Property.

The Company is not in discussions with any party in relation to a sale and is
not in receipt of any approaches. Accordingly, the Company is no longer in an
offer period and the requirement to make disclosures under Rule 8 of the
Takeover Code has now ceased.

Corporate Update

The Board is cognisant of its ongoing obligations to ensure the short-term
funding of the business and its activities and is taking such advice as is
necessary to ensure that the Company can meet its ongoing requirements.

In co-operation with advisers, the Company has been taking all necessary and
appropriate steps to reduce all expenditure while protecting the value of any
assets which may contribute to creditor and shareholder returns.

As such, the Company intends to enter into active discussions with
shareholders and other financing parties interested in providing funding to
the Company to support the execution of a sale process of the business, assets
and Intellectual Property within the Enteq group outside the auspices of an
FSP.

The Company has a cash balance of $0.602m as at 25th April 2025 which gives an
expected cash runway until mid-May, based on current management forecasts.
Enteq will therefore need further funding however if at any time it is
considered by the Board that suitable funding cannot realistically be raised
then the Board will take the appropriate steps to seek to preserve value for
creditors.

SABER Update

The SABER equipment will currently remain in Houston and has been prepared,
with further engineering enhancement for further active test drilling
operations. The customer in Australia, who have undertaken the testing to
date, remains engaged and interested in the potential of this technology for
their operations and will be ready to run the equipment again when the rig
schedule and availability of SABER equipment permits.

The Board continues to believe in the potential of the SABER technology as a
disruptive solution in a significant market and will be supportive of any
funding strategy to realise the potential.

In addition, and in response to market demand, a standalone power generator
module, (a derivative of SABER) has been developed, with commercial and
technical discussions in process with potential customers.

 

For further information, please contact:

Enteq Technologies
plc
+44 (0)20 8087 2202

www.enteq.com (http://www.enteq.com/)

Andrew Law, Chief Executive Officer

 

Gneiss Energy (Financial Adviser)
 
+44 (0)20 3963 9263

Jon Fitzpatrick, Managing Director

Doug Rycroft, Director

 

Cavendish Capital Markets Limited (NOMAD and
Broker)                     +44 (0)20 7220 0500

Ed Frisby, George Lawson (Corporate Finance)

Andrew Burdis (ECM)

 

 

Further information

This announcement is not intended to and does not constitute an offer to sell
or the solicitation of an offer to subscribe for or buy or an invitation to
purchase or subscribe for any securities or the solicitation of any vote in
any jurisdiction.

The release, publication or distribution of this announcement in jurisdictions
outside the United Kingdom may be restricted by law and therefore persons into
whose possession this announcement comes should inform themselves about and
observe such restrictions.  Any failure to comply with such restrictions may
constitute a violation of the securities law of any such jurisdiction.

This announcement has been issued by, and is the sole responsibility of,
Enteq.

This announcement contains inside information as defined under MAR.  The
person responsible for arranging the release of this announcement on behalf of
Enteq is Andrew Law (CEO).

Publication on website

In accordance with Rule 26.1 of the Code, a copy of this announcement will be
available on the investor section of the Company's website at
www.enteq.com/investors no later than 12 noon (London time) on the business
day immediately following the date of this announcement. The content of the
website referred to in this announcement is not incorporated into and does not
form part of this announcement.

Miscellaneous

This announcement (including information incorporated by reference in this
announcement), oral statements made regarding the Formal Sale Process, and
other information published by Enteq may contain statements about Enteq that
are or may be deemed to be forward looking statements. Such statements are
prospective in nature. All statements other than historical statements of
facts may be forward looking statements. Without limitation, statements
containing the words "targets", "plans", "believes", "expects", "aims",
"intends", "will", "may", "anticipates", "estimates", "projects" or
"considers" or other similar words may be forward looking statements. Forward
looking statements inherently contain risks and uncertainties as they relate
to events or circumstances in the future. Important factors such as business
or economic cycles, the terms and conditions of Enteq's financing
arrangements, tax rates, or increased competition may cause Enteq's actual
financial results, performance or achievements to differ materially from any
forward-looking statements. Due to such uncertainties and risks, readers are
cautioned not to place undue reliance on such forward-looking statements,
which speak only as of the date hereof.  Enteq disclaims any obligation to
update any forward looking or other statements contained herein, except as
required by applicable law.

This announcement is not intended to, and does not, constitute or form part of
any offer, invitation or solicitation of any offer to purchase, otherwise
acquire, subscribe for, sell or otherwise dispose of any securities or the
solicitation of any vote or approval in any jurisdiction. This announcement
has been prepared in accordance with English law and the Code, and information
disclosed may not be the same as that which would have been prepared in
accordance with laws outside of the United Kingdom. The release, distribution
or publication of this announcement in jurisdictions outside of the United
Kingdom may be restricted by laws of the relevant jurisdictions, and
therefore persons into whose possession this announcement comes should inform
themselves about, and observe, any such restrictions. Any failure to comply
with the restrictions may constitute a violation of the securities law of any
such jurisdiction.

Important notices

 

Gneiss Energy Limited ("Gneiss"), which is authorised and regulated in the
United Kingdom by the Financial Conduct Authority, is acting exclusively for
Enteq as the financial adviser and no one else in connection with the matters
described in this announcement and will not be responsible to anyone other
than Enteq for providing the protections afforded to clients of Gneiss or for
providing advice in relation to any matter or arrangement referred to in this
announcement.

 

Cavendish Capital Markets Limited ("Cavendish"), which in the United Kingdom
is authorised and regulated by the Financial Conduct Authority, is acting
exclusively as nominated adviser and broker to Enteq and no one else in
connection with the matters described in this announcement and will not be
responsible to anyone other than Enteq for providing the protections afforded
to clients of Cavendish nor for providing advice in relation to any matter or
arrangement referred to in this announcement.

 

 

 

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