Increase in existing loan facility

RNS Number : 8390C

EQTEC PLC

03 October 2018

 

3 October 2018

EQTEC plc

("EQTEC" or the "Company")

Increase in existing loan facility

EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, is pleased to announce that it has executed final legal documentation amending the existing secured loan facility ("Amended Loan Agreement") entered into by the Company on 5 July 2018 with Cuart Investments Fund and associates (the "Lenders").

As reported on 27 September 2018 subject to final legal documentation, the Company and the Lenders agreed to amend the existing Loan Agreement such that the secured loan facility is increased by up to US$10 million (approximately £7.6 million). The Company will receive net approximately US$0.8 million after expenses from the first Tranche to be drawn down today.

The Company has today granted warrants to the Lenders over 33,350,318 Ordinary Shares at an exercise price of 1.57 pence per Ordinary Share exercisable within three years from the date of grant.

Under the Amended Loan Agreement, a commitment fee of US$136,000 is payable by the Company to the Lenders through the issue of 8,349,546 Ordinary Shares in the Company to the Lenders at an issue price of 1.2542 pence per share.  Application will be made for the admission to AIM of these new ordinary shares and trading is expected to start on 9 October 2018.

Enquiries

EQTEC plc	[phone]
Ian Price - Chief Executive Officer Gerry Madden - Finance Director
Northland Capital Partners Limited - Nomad and Joint Broker	[phone]
Tom Price / Dugald J. Carlean
VSA Capital Limited - Financial Adviser and Joint Broker	[phone]
Andrew Monk / Andrew Raca
Luther Pendragon - Financial PR	[phone]
Harry Chathli / Alexis Gore / Joe Quinlan

Notes to Editors

About EQTEC plc

EQTEC's business model involves sourcing and providing assistance in developing waste elimination projects to which it will ultimately sell its EQTEC Gasifier Technology ("EGT") and O&M services. EGT enables project developers to construct waste elimination plants and recover electrical and thermal energy from the waste streams.

EQTEC sources projects that have a local supply of waste in need of elimination and conversion. It builds relationships and brings together the developers, the waste owners, the building contractors and funders. It then supplies the energy recovery technology and provides engineering services to the projects. Furthermore, EQTEC will provide O&M services to the operating projects generating recurring revenues over the life of the projects.

The Company is quoted on AIM and trades as EQT. Further information on the Company can be found at www.eqtecplc.com

 

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