REG - EQTEC PLC - Italy MDC - Refinance Update & Conversion Notices

EQTECAnnouncement

21/12/2023 07:15

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RNS Number : 5301X  EQTEC PLC  21 December 2023

21 December 2023

EQTEC plc

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

 

Update on Bank Refinance for Italy Market Development Centre

and Shareholders Conversion Notices

 

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 provide an update
on bank refinance for its Italy Market Development Centre (the "Plant") and to
confirm that it has received two shareholder conversion notices pursuant to
the financial restructuring announced by the Company on 20 November 2023.

 

Refinance for Italy Market Development Centre

 

This update follows the Company's announcement on 4 September 2023 that it had
entered into a loan facility of €2.9 million (the "Facility") with Banca del
Fucino S.p.A. (the "Lender") to refinance the Plant.

 

The Company can now confirm that it has successfully completed all performance
improvements and achievement of performance criteria set by the Lender.  The
Lender has not been available to visit the Plant prior to the holiday period
in December 2023, however it has now arranged to visit in early January 2024.
The Company expects to be able to draw down the amount of the full Facility
shortly after that visit, and will make a further announcement accordingly.

 

The Plant became operational in March 2023 and EQTEC completed handover
protocols and transfer of plant operations to EQTEC Italia MDC Srl ("Italia
MDC") in June 2023. The Company remains actively involved with supporting
Italia MDC in its endeavours to drive more productive and continual
operations.

 

Shareholders conversion notices

 

The Company on 19 December 2023 received two conversion notices pursuant to
the Altair Group Investment Limited ("Altair") and Pitcole Limited ("Pitcole")
Settlement Agreements as set out in the Company's announcement of 20 November
2023.

 

In light of the Company's capital reorganisation and share consolidation,
which completes today with admission to trading on AIM of the Company's
consolidated ordinary €0.01 shares ("Consolidated Shares"), the Pitcole
Conversion Shares and Altair Conversion Shares shall be issued in the form of
Consolidated Shares.

 

In accordance with the Pitcole Settlement Agreement, Pitcole has elected to
convert a remaining balance of £400,000 into 13,986,014 new Consolidated
Shares in the Company ("Pitcole Conversion Shares") at a price equal to the
average of the daily VWAPs for each of the five consecutive trading days
immediately prior to 18 December 2023 the date of the conversion notice which
was 2.86p (as adjusted for the share consolidation).

 

In accordance with the Altair Settlement Agreement, Altair has elected to
convert a remaining balance of the Altair Redemption Sum of £562,500 into
19,667,832  new Consolidated Shares  in the Company ("Altair Conversion
Shares") at a price equal to the average of the daily VWAPs for each of the
five consecutive trading days immediately prior to 18 December 2023 the date
of the conversion notice which was 2.86p (as adjusted for the share
consolidation).

 

Upon conversion of this remaining balance under the Altair Settlement
Agreement, the Company is released from all liabilities and obligations
pursuant to the debt facility with Altair announced on 09 December 2022.

 

 

Application will be made to the London Stock Exchange for both the Pitcole
Conversion Shares and the Altair Conversion Shares, being in aggregate
33,653,846 new Consolidated Shares (the "New Shares"), to be admitted to
trading on AIM. Dealings in the New Shares, which will all rank pari passu
with the Company's Consolidated Shares at that time, are expected to commence
at 8.00 a.m. on or around 29 December 2023.

 

Following Admission, there will be 181,485,890 Consolidated Shares in issue.
The Company holds no Consolidated Shares in Treasury. This number may be used
by shareholders as the denominator for the calculation by which they will
determine if they are required to notify their interest in, or a change in
their interest in, the share capital of the Company under the FCA's Disclosure
Guidance and Transparency Rules.

 

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 

  
 Panmure Gordon - Broker                            +44 20 7886 2500 

 John Prior / Hugh Rich 

  

 

About EQTEC Italia MDC srl

 

EQTEC Italia MDC Srl ("Italia MDC") is a company registered in Italy for the
purpose of transforming agricultural and forestry waste into electrical power
and biochar in a relatively remote and heaviliy agrarian community. The
Company currently owns 49.0% of Italia MDC, with an option to acquire further
equity in future.

 

Italia MDC owns and operates a 1 MWe plant in Gallina (the "Plant"), a village
near Castiglione d'Orcia in Tuscany's Val d'Orcia, an area considered to be
the region's most scenic. It is on a site originally owned by Toscana Cereali
Societa' Cooperativa Agricola, from whom Italia MDC is currently leasing and
with whom Italia MDC have agreed to purchase the land by 30 July 2024. With
EQTEC technology at its core, the Plant is capable of converting multiple
types of biomass feedstock into electrical power and thermal energy.

 

Initially, the Plant is converting higher-density wood waste into electrical
power for export to the national grid, for which a connection has been secured
with a preferential tariff. In addition to the electricity, the Plant is
producing biochar for purchase by two European wholesalers of the product.
Thermal energy produced through the continuous EQTEC thermochemical conversion
process is being recycled to dry the feedstock, improving the Plant's
waste-to-energy conversion efficiency.

 

Feedstock is being delivered by multiple suppliers, and Italia MDC has
identified additional, potential suppliers in order to maintain continuity of
supply and leverage over cost and availability. Further, the Plant has been
upgraded to support lower-density feedstocks such as straw or other
agricultural waste. This ability to switch amongst feedstock types and
suppliers adds resilience to Italia MDC's business model.

 

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 the London Stock Exchange's Alternative Investment
Market (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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