REG - EQTEC PLC - Strategic Partnerships Update

EQTECAnnouncement

16/12/2021 07:00

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RNS Number : 8082V  EQTEC PLC  16 December 2021

16 December 2021

EQTEC plc

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

 

Strategic Partnerships Update

 

 

EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling
the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and
other energy production, is pleased to provide the following update on new and
existing Collaboration Framework Agreements ("CFAs").

 

H2 Energy Solutions

 

The Company is entering into a CFA with H2 Energy Solutions Ltd ("H2"), a
hydrogen technology investment and project development business headquartered
in Germany. The Company and H2 (together, the "Parties"), will collaborate to
develop opportunities for deployment of waste-to-hydrogen capabilities and
other opportunities, particularly in Germany and Turkey (the "Territory").

 

The announcement comes as the Company pursues growing demand for a range of
offtake applications based on EQTEC's versatile synthesis gas ("syngas"). The
Company recently announced exploration of new offtake potential at its
Billingham, Teesside project and at its Deeside, Flintshire project, with the
latter focused on feasibility for hydrogen production. On 26 November 2021,
the Company announced a Strategic Collaboration Agreement with engineering
leader Wood for joint development of go-to-market technology solutions for
synthetic natural gas ("SNG") and hydrogen production.

 

Highlights:

 

 ·         The objectives of the CFA with H2 include joint sourcing of project
           opportunities and collaborative development of projects in the Territory, as
           well as consideration of other commercial opportunities beyond the Territory;
 ·         The CFA does not specify commercial terms, but a joint strategic intent with
           supporting governance; any project developed through the collaboration would
           be subject to commercial terms and contracts common in the sector and
           appropriate to the relevant jurisdiction(s);
 ·         The Parties will focus their efforts on a select project portfolio in the
           Territory toward integration of EQTEC's Advanced Gasification Technology for
           Combined Cooling Heat and Power and syngas-to-chemical (e.g., hydrogen, SNG)
           applications;
 ·         For the Company, H2 will be a go-to-market partner in the Territory, with a
           particular focus on on-premise, industrial solution opportunities;
 ·         EQTEC will provide project development, technology solutions, engineering and
           technical design services as well as commercial modelling for solution types;
           and
 ·         As immediate pursuits, the Parties have identified two opportunities in
           Germany and are qualifying them now.

 

The Company will provide further updates as opportunities progress through the
collaboration.

 

MetalNRG

 

The Company is pleased to announce an enhancement to its existing Framework
Partnership Agreement ("FPA") with MetalNRG plc (LON:MNRG) ("MetalNRG"). The
FPA was announced on 22 March 2021 with the Company's proposed acquisition of
£500,000 worth of MetalNRG shares, which completed in May 2021. On 21 June
2021, MetalNRG was confirmed by the Company as a consortium partner with EQTEC
and two other investors for repowering, owning and operating the Italia MDC
biomass-to-energy plant in Tuscany, Italy.

 

Highlights:

 

 ·         In a share-for-share exchange, MetalNRG will issue 100,000,000 MNRG shares to
           EQTEC which, at the mid-market closing price of MetalNRG shares on 15 December
           2021, equates to a consideration of £295,000. In return, the Company will
           issue 23,600,000 new ordinary shares in the Company ("Consideration Shares")
           to MetalNRG which, at the mid-market closing price of EQTEC shares on 15
           December 2021 equates to a consideration of approximately £295,000;
 ·         MetalNRG will issue EQTEC with 50,000,000 warrants with an exercise price of
           0.45p and a maturity date three years from the date of issue;
 ·         Once completed, the share swap between the Parties will see the Company's
           investment in MetalNRG increase to 160,606,061 shares, representing 14.1% of
           MetalNRG's issued share capital; and
 ·         The Company continues to retain its right to appoint a director to the
           MetalNRG Board of Directors and expects to exercise that right in the first
           half of 2022.

This expanded arrangement strengthens ties between the Parties, as MetalNRG
continues to invest, develop and deliver sustainable, shovel-ready green
energy projects, with a specific focus on biomass and waste-to-energy projects
in the UK and Europe, to reduce CO2 emissions and contribute to the
achievement of 2050 Net Zero goals, whilst working with EQTEC as a leading
technology and innovation partner.

Exercise of warrants, Admission and total voting rights

Warrants over 12,000,000 New Ordinary Shares have been exercised ("Warrant
Shares"). The aggregate gross proceeds of these exercises receivable by the
Company amount to £30,000.

The Company will make an application to the London Stock Exchange plc for the
Warrant Shares and the Consideration Shares, being in aggregate, 35,600,000
new Ordinary Shares, to be issued and allotted set out above, to be admitted
to trading on AIM ("Admission"). It is expected that Admission will become
effective and dealings will commence on or around 21 December 2021. The
35,137,255 New Ordinary Shares will rank pari passu with the existing Ordinary
Shares.

Following Admission, there will be 8,599,024,926 Ordinary Shares in issue.
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.

David Palumbo, CEO of EQTEC, commented:

"Throughout 2021, the importance of forming and working within robust,
strategic collaboration agreements has been a key enabler of EQTEC's strategic
growth. These agreements have and will continue to deliver investment, new
opportunities and capabilities with financing, complementary technologies, and
EPC, allowing us and our partners to explore, qualify and launch in new
markets. I look forward to our strengthened working relationship with MetalNRG
as they support us with identifying and qualifying new projects and I am eager
to collaborate with H2 to expand the geographical reach and application
breadth for our highly versatile, waste-to-syngas capabilities for hydrogen
and beyond."

 

More information

This announcement contains inside information as defined in Article 7 of the
EU Market Abuse Regulation No 596/2014 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 / James Dance

 Arden Partners - Joint Broker                                 +44 20 7614 5900
 Paul Shackleton (Corporate) / Simon Johnson (Sales)

 Canaccord Genuity - Joint Broker                              +44 20 7523 8000
 Henry Fitzgerald-O'Connor / James Asensio / Patrick Dolaghan

 Alma PR - Financial Media & Investor Relations                +44 20 3405 0205
 Josh Royston / Sam Modlin / Matthew Young                     EQTEC@almapr.co.uk (mailto:EQTEC@almapr.co.uk)

 BECG - General Media Enquiries                                +44 7554 014 188 / +44 7867 452 269
 Carrie Lowe / Tom Gosschalk                                   EQTEC@BECG.com (mailto:EQTEC@BECG.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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