REG - EQTEC PLC - Update on Verde Corporation Subscription

EQTECAnnouncement

11/03/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240311:nRSK3121Ga&default-theme=true

RNS Number : 3121G  EQTEC PLC  11 March 2024

11 March 2024

 

EQTEC plc

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

 

Update on Verde Corporation Subscription

 

Further to its announcements of 13 February 2024, 22 February 2024 and 29
February 2024, 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,
notifies an update on the Subscription.

 

Completion has been postponed due to a delay in receipt of funding by Verde
Corporation ("Verde"). Verde has notified the Company that the funds
designated for the Subscription form part of a syndicated investment pool
linked to another unrelated transaction in the USA, that must complete in
tandem with the investment into EQTEC. Verde has assured the Company that such
transaction is closing imminently enabling Verde to conclude the Subscription
under the revised terms.

 

Since announcing the initial Subscription on 13 February 2024, Verde has
advised EQTEC that it has undertaken and concluded to its satisfaction its
required due diligence on the Company, including visiting the Company's
Italian operations. Consequently, to vary settlement timescales and remove
certain conditionality, the Company has signed a new Subscription Letter with
Verde, for the same total subscription amount, replacing the one signed on 11
February 2024 (as amended).

 

The key terms of the new Subscription Letter are as follows:

 

·    First subscription for cash consideration of £500,000 (the "First
Tranche") for 21,276,596 ordinary shares in the Company ("Shares") at a
placing price of £0.0235 (the "First Tranche Price").

·    Second subscription for cash consideration of £1,000,000 (the
"Second Tranche") at a placing price of £0.0475 (the "Second Tranche Price")
with the granting of 1 warrant per Share (the "Second Tranche Warrants") with
a 48-month term from grant and an exercise price of £0.0475.

·    Receipt of the cash consideration of both tranches by the Company by
29 March 2024

·    In relation to the First Tranche, Admission becoming effective by not
later than seven (7) days only after receipt of the First Tranche cash
consideration (or such later time and/or date as the Company may determine);

·    On receipt of the First Tranche consideration the Company will
immediately issue notice of an EGM to be held to seek approval from its
Shareholders to increase the Authorised Share Capital and refresh the
Company's authority to allot shares;

·    In relation to the Second Tranche, subject to receipt of the Second
Tranche consideration, Admission becoming effective by not later than seven
(7) days after approval is received from Shareholders at EGM to increase the
Authorised Share Capital and refresh the Company's authority to allot shares
(or such later time and/or date as the Company may determine).

 

 The new Subscription Letter includes board representation rights as
previously announced.

 

The agreement for conversion of debt into equity by significant shareholders
Pitcole Limited and Altair Group Investment Limited, along with the
undertaking by YA-RF Lenders not to convert the remaining £600,000 syndicated
facility, until after 30 June 2024, remains in place as previously announced.

 

A further update announcement will be made in due course, including
confirmation of the admission date of the First Tranche Shares and the
Conversion Shares.

 

Terms in this announcement have the same meaning as defined in the Company's
announcement on the Subscription on 13 February 2024, unless otherwise stated.

 

 

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

 Fortified Securities - Broker                  +44 20 3411 7773

 Guy Wheatley

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

 Samantha Esqulant

 Panmure Gordon - Broker                        +44 20 7886 2500

 Hugh Rich

 

About EQTEC

 

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/) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUAANRSRUOARR