REG - EQTEC PLC - Agreement of loan facility with Altair Group

EQTECAnnouncement

09/12/2022 07:00

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RNS Number : 1391J  EQTEC PLC  09 December 2022

 

09 December 2022

 

EQTEC plc

("EQTEC", the "Company" or the "Group")

 

Agreement of loan facility with Altair Group

 

EQTEC plc (AIM: EQT), a global technology innovator powering distributed,
decarbonised, new energy infrastructure through its waste-to-value solutions
for hydrogen, biofuels, and energy generation, announces that it has today
entered into a loan facility (the "Facility") with Altair Group Investment
Ltd. ("Altair"), the Company's largest shareholder.

 

The Facility

 

The Facility will provide the Company with an up to £2.0 million unsecured
loan with a term of 24 months from the date of execution. The Facility carries
an annual interest rate of 8.0% on funds drawn and outstanding, with interest
payable quarterly in advance. Additionally, the Company will pay a 2.5% fee
for arrangement of the Facility.

 

The Facility provides that the Company may, at its own discretion, make
payment against part or all of the loan in new ordinary shares ("Shares"),
such number of Shares to be calculated by reference to the volume weighted
average Share price over the five business days immediately preceding the
relevant payment date.

 

Additionally, the Company will issue to Altair Group 666,666,666 warrants with
a strike price of £0.0045, being a premium of 55 percent to the closing Share
price of £0.0029 on 08 December 2022, valid for a period of two years.

 

Proceeds from the Facility will support general working capital, acceleration
of project sales and technology deployment, in particular for the Company's
Market Development Centres ("MDCs").

 

Related party transaction

Altair has an existing holding of 1,714,091,107 Shares, representing 18.19
percent of the Company's issued share capital and, as such, is a substantial
shareholder as defined in the AIM Rules. The Company's entering into the
Facility is therefore a related party transaction pursuant to Rule 13 of the
AIM Rules.

Accordingly, the directors of the Company, having consulted with the Company's
nominated adviser, Strand Hanson Limited, consider the terms of the Facility
to be fair and reasonable insofar as the Company's shareholders are concerned.

 

David Palumbo, CEO of EQTEC, commented:

 

"We are grateful to Altair for their unwavering support of EQTEC and their
continued support of our business strategy. We remain committed to execution
of our strategy, driving MDCs and key projects to close, deploying EQTEC
technology to more places, more often and growing the business to its full
potential."

 

This announcement contains inside information as defined in Article 7 of the
EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom
domestic law by virtue of the European Union (Withdrawal) Act 2018, as
amended, and has been announced in accordance with the Company's obligations
under Article 17 of that Regulation.

 

ENQUIRIES

 EQTEC plc                                                     +44 203 883 7009
 David Palumbo / Nauman Babar

 Strand Hanson - Nomad & Financial Adviser                     +44 20 7409 3494
 James Harris / Richard Johnson

 Panmure Gordon - Joint Broker                                 +44 207 886 2500
 John Prior / Hugh RIch

 Canaccord Genuity - Joint Broker                              +44 207 523 8000
 Henry Fitzgerald-O'Connor / James Asensio / Patrick Dolaghan

 Alma PR - Financial Media & Investor Relations                +44 203 405 0205
 Josh Royston / Sam Modlin                                     EQTEC@almapr.co.uk (mailto:EQTEC@almapr.co.uk)

 Instinctif - General Media Enquiries                          +44 207 457 2381 / +44 788 788 4794
 Chris Speight / Tim Field                                     EQTEC@instinctif.com (mailto:EQTEC@instinctif.com)

 

About EQTEC plc

 

As one of the world's most experienced gasification technology and engineering
companies, with a growing track record of delivering operational and
commercial success for transforming waste-to-energy through best-in-class
technology innovation, engineering and project development, EQTEC brings
together design innovation, project delivery discipline and solid commercial
experience to add momentum to the global energy transition. EQTEC's proven,
proprietary and patented technology is at the centre of clean energy projects,
sourcing local waste, championing local businesses, creating local jobs and
supporting the transition to localised, decentralised and resilient energy
systems.

 

EQTEC designs, supplies and builds advanced gasification facilities in the UK,
EU and US, with highly efficient equipment that is modular and scalable from
1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of
feedstock, including forestry wood waste, vegetation and other agricultural
waste from farmers, industrial waste and sludge from factories and municipal
waste, all with no hazardous or toxic emissions. EQTEC's solutions produce a
pure, high-quality synthesis gas ("syngas") that can be used for the widest
range of applications, including the generation of electricity and heat,
production of synthetic natural gas (through methanation) or biofuels (through
Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.

 

EQTEC's technology integration capabilities enable the Group to lead
collaborative ecosystems of qualified partners and to build sustainable waste
reduction and green energy infrastructure around the world.

 

The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has
awarded EQTEC the Green Economy Mark, which recognises listed companies with
50% or more of revenues from environmental/green solutions.

 

Further information on the Company can be found at www.eqtec.com
(http://www.eqtec.com/) .

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