REG - EQTEC PLC - Equity placement of c. £850,000

EQTECAnnouncement

28/05/2024 07:00

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RNS Number : 9591P  EQTEC PLC  28 May 2024

28 May 2024

 

EQTEC plc

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

 

Equity placement of c. £850,000 gross proceeds

 

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, is pleased to announce a
fundraise of c. £850,000 (gross) at 1.4 pence per ordinary share in the
Company (being a c. 18% discount to the closing price of 1.7 pence on 24 May
2024, being the last business day prior to the Placing) (the "Placing").

 

The Placing will result in the issuance of 60,887,490 ordinary shares of
€0.01 each in the Company ("Shares") to the subscribers (the "Placing
Shares"). A further 2,435,499 new Shares are being issued in settlement of
certain fees in relation to the Placing ("Fee Shares"). The Placing has been
arranged by Fortified Securities.

 

The Placing has been undertaken via direct subscription letters executed with
the Company by the subscribers (the "Subscribers"), who are regulated
stockbrokers. In aggregate the Subscribers have subscribed for gross proceeds
of c. £850,000.

 

The issuance of Placing Shares is conditional upon cleared funding from the
Subscribers, being received by the Company on or around 29 May 2024, save for
c. £500,000 of the Placing which is to settle through Global Investment
Strategy UK Limited, an existing broker for the Company, acting as a
settlement agent, on or around 10 June 2024.

 

Application will be made for the Placing Shares and Fee Shares to be admitted
to AIM. A further announcement will be made in relation to the dates of
admission to AIM of the new Shares to be issued.

 

The Placing Shares will be issued under the Company's existing share
authorities and represent the entire remaining authorised share capital of the
Company free of pre-emption. The directors intend to seek further authority to
allot in due course at the next general meeting.

 

No portion of the Placing relates to ordinary shares in the Company arising
from the Syndicated CLN nor any conversion of any of the debt pursuant to the
Term Loan (each term as defined and detailed in the Company's announcement of
23 May 2024). The Placing represents a new capital injection raised for cash
proceeds. No portion of the Placing will be used for repayments of the Term
Loan with the lenders having waived the rights to any prepayment arising from
the Placing.

 

The board intends for the proceeds of the Placing to be used for the working
capital for the operations of the Company and, alongside existing cash
balances and the Logik settlement proceeds (as announced by the Company on 1
May 2024 and expected to be received by 28 June 2024), to support the
execution of the previously announced strategic pivot.

 

David Palumbo, CEO of EQTEC, commented:

 

"This Placing, alongside the recently announced refinance through the Term
Loan, provides the Company with a clear capital runway to develop and execute
the previously announced strategic pivot. We look forward to updating the
market on upcoming pipeline developments and the closing of the Logik
settlement in due course. We thank our shareholders for their continued
support during this transitionary period."

 

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 20 3883 7009 

 David Palumbo / Jeffrey Vander Linden 

  
 Strand Hanson - Nomad & Financial Adviser        +44 20 7409 3494 

 James Harris / Richard Johnson 

  
 Global Investment Strategy UK Ltd - Broker       +44 20 7048 9045 

 Samantha Esqulant 

 Fortified Securities - Broker                    +44 20 3411 7773 

 Guy Wheatley 

  

 

About EQTEC plc

 

As one of the world's most experienced thermochemical conversion technology
and engineering companies, EQTEC delivers waste management and new energy
solutions through best-in-class innovation and infrastructure engineering and
value-added services to owner-operators. EQTEC is one of only a few technology
providers directly addressing the challenge of replacing fossil fuels for
reliable, baseload energy. 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, specifies and delivers clean, syngas production solutions in
the USA, EU and UK, with highly efficient equipment that is modular and
scalable from 1MW to 30MW. EQTEC's versatile solutions process 60 varieties of
feedstock, including forestry waste, agricultural waste, industrial waste 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 renewable 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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