Proposed Placing, PrimaryBid Offer & Subscription

RNS Number : 3967S
EQTEC PLC
13 July 2022
 

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO, THE UNITED STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

 

This announcement contains inside information for the purposes of the UK version of Article 7 of Regulation (EU) 596/2014 ("MAR").  In addition, market soundings (as defined in MAR) were taken in respect of the Placing with the result that certain persons became aware of inside information (as defined in MAR), as permitted by MAR.  This inside information is set out in this announcement.  Therefore, those persons that received inside information in a market sounding are no longer in possession of such inside information relating to the Company and its securities.  

 

 

EQTEC plc

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

 

Proposed Placing, PrimaryBid Offer and Subscription to raise a minimum of £ 3 million

 

 

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, today announces its intention to raise a minimum of £3 million before expenses, by way of (i) a placing of new Ordinary Shares ("Placing Shares") at a fixed price of 0.5 pence per share (the "Issue Price") to institutional and other investors (the "Placing"), (ii) an offer for subscription of new Ordinary Shares by PrimaryBid ("PrimaryBid Shares") at the Issue Price to retail investors (the "PrimaryBid Offer"), and (iii) direct subscriptions with the Company of new Ordinary Shares (the "Subscription" and, together with the Placing and the PrimaryBid Offer, the "Fundraising").

 

Highlights :

· The Company intends to conduct the Fundraising to raise a minimum of £3 million (before expenses) through the issue of new Ordinary Shares at the Issue Price;

· The Fundraising will include (i) an offer for subscription, to be conducted by PrimaryBid on behalf of the Company, and (ii) direct subscriptions with the Company;

· The proceeds from the Fundraising will be used to:

o  maintain momentum with existing projects critical for demonstrating EQTEC's capabilities and raising awareness of them;

o  accelerate growth by pursuing second and/or third projects in existing markets; and

o  build for scale by extending the capability and capacity to support the burgeoning pipeline and take on an increasing number of projects.

· The Issue Price represents a discount of approximately 23 per cent. to the closing mid-market price of the Company's Ordinary Shares on AIM on 13th July 2022, being the latest practicable date before this Announcement; and

· The Placing is to be conducted by way of an accelerated bookbuild process, to commence immediately following this Announcement and will be subject to the terms and conditions set out in Appendix I to this Announcement.

 

Capitalised terms not otherwise defined in the text of this Announcement have the meaning given to them in the section headed "Definitions" in Appendix II below.

 

ENQUIRIES

EQTEC plc

+353 21 2409 056

David Palumbo / Nauman Babar




Strand Hanson - Nomi nated & Financial Adviser

+44 20 7409 3494

James Harris / Richard Johnson




Arden Partners - Joint Broker

+44 20 7614 5900

Ruari McGirr (Corporate) / Simon Johnson (Sales)




Canaccord Genuity - Joint Broker

+44 20 7523 8000

Henry Fitzgerald-O'Connor / Patrick Dolaghan




Alma PR - Financial Media & Investor Relations

+44 20 3405 0205

Josh Royston / Sam Modlin

EQTEC @almapr.co.uk



Instinctif   -   General Media Enquiries

 

+44 20 7457 2381 / +44 7887 884794

Chris Speight / Tim Field

EQTEC@instinctif.com

 

Additional information

 

Expected timetable of events


2022

Announcement of the Fundraising

4.45 p.m. on 13th  July

Launch of PrimaryBid Offer

4.46 p.m. on 13th July

Announcement of the results of the Fundraising

14th July

Admission of New Shares to trading on AIM and commencement of dealings

8.00 a.m. on 19th July

 

Notes:

 

1. Each of the above times and/or dates is subject to change at the absolute discretion of the Company and the Joint Brokers. If any of the above times and/or dates should change, the revised times and/or dates will be announced through a Regulatory Information Service.

 

2.  All of the above times refer to London, UK time, unless otherwise stated.

 

Introduction

 

EQTEC is a technology innovation company with proven, patented, proprietary capabilities to design, deploy and maintain systems for thermochemical conversion of a wide variety of waste into clean, synthesis gas ("syngas"), an intermediate fuel that can be used as alternative to fossil fuels like natural gas, for the generation of baseload power and heat, as well as the extraction of hydrogen or synthetic natural gas ("SNG") and production of biofuels.

 

The process applied by EQTEC technology does not produce the harmful emissions produced by alternative technologies, making EQTEC-produced syngas a clean alternative for the Net Zero future. The efficiency and versatility of EQTEC's technology make it unique as a supplier of baseload energy and biofuels solutions for energy independence and security.  This is demonstrated by its track record over a decade of commercial operations indicating the highest levels of operational availability of plant systems running on EQTEC's technology.

 

EQTEC's ability to design and deploy solutions that are modular and scalable from 1MW to 30MW enables a wide range of business models from small-scale, distributed plants that bring resilience to the grid and support local-to-local, waste-to-value solutions, to large-scale, centralised industrial facilities that can replace legacy fossil fuel power stations or incineration facilities.

 

EQTEC's proven, proprietary and patented technology design, together with its deployment and maintenance capabilities, mitigate the risks of using third-party equipment. EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners to build sustainable waste reduction and green energy infrastructure.

 

Strategy

 

The Company's target business model positions EQTEC as the leading technology innovator and licensing partner to owner-operators for syngas technology and production of renewable, clean energy and biofuels. The Company's business strategy aims to develop that market, position EQTEC as a leader within it and scale the business through targeted development of capability and capacity, enabled by digital tools and techniques. Critical to the Company's success with this strategy is growth of a qualified and well-integrated set of partners to deliver an increasing number of activities essential to integration of EQTEC technologies into the world's energy and biofuels plants of the future.

 

The Company currently generates income through three revenue streams: development services, technology sales & services and other revenues. Development services include activities essential to achievement of Financial Close, from land acquisition, planning & permitting and engineering & design to Engineering, Procurement & Construction (EPC) selection, funding and legal execution of contracts. Technology sales & services include specification, manufacture and delivery on site of EQTEC-designed equipment and essential ancillary equipment, on-site construction advisory and further engineering as required, technology integration support with non-EQTEC technology and commissioning of the EQTEC-enabled plant. Other revenues include plant operations from part-owned or wholly-owned Market Development Centres, from consultancy or from provision of other non-core services.

 

The Company anticipates that its revenue streams will evolve in the future, with development fees declining as partners increasingly take over all but the core technology engineering work leading to Financial Close. Greater differentiation across technology sales & services is expected as partners are able to integrate more fully and drive more projects with relative independence, and with increasing revenue from technology licensing, maintenance and other value-added services for operational plants running EQTEC technology.

 

The Company currently develops business in the USA, UK and the EU (including France, Italy, Croatia and Greece). The Company will target new geographies as substantial pipelines of qualified opportunities in those markets present themselves and as the viability of a business development and delivery capability in those markets can be established.

 

The Company is focused on maximising shareholder value in the near term through greater recognition and adoption of its commercial applications by global infrastructure investors and owners operators and its accelerated execution of its licensing strategy resulting in an increased valuation by the market, measurable in the share price. To achieve this, the Company is driving an increase in the number of operational plants running EQTEC technology, after which it will also increase the variety of applications of EQTEC solutions deployed in those plants. EQTEC is currently pursuing projects with feedstock from municipal waste (in the form of refuse-derived fuel, or RDF), from industry waste (such as contaminated plastics) and from a range of agricultural and forestry waste. In addition to CHP, EQTEC is currently pursuing projects that would apply EQTEC's waste-to-syngas capabilities to production of hydrogen, sustainable aviation fuel (SAF), synthetic natural gas (SNG) and other biofuels.

 

EQTEC plc is quoted on the AIM market of the London Stock Exchange (LSE), bears the Green Economy Mark awarded by the LSE, and trades as AIM:EQT.

 

Current trading

 

EQTEC delivered €9.2 million in revenue in 2021 (€2.2 million in 2020) and, following a successful fund raise, the Company expects to achieve revenues in line with market guidance being €27 - 31 million in revenue in 2022.  This assumes the planned progression, in line with our expected time frame, of project SPV sales, financial close and/ or commissioning of new plants that would generate revenues from technology sales, engineering service fees, development service fees and operations & maintenance fees.

 

EQTEC has five plants under construction, with two approaching commissioning and commercial operations from 2022 and nearly 20 other projects under development across seven geographies including USA, UK, France, Italy, Croatia, Greece and Ireland. These projects incorporate EQTEC solutions for biomass-to-power, RDF-to-power, RDF-to-hydrogen, biomass-to-hydrogen, biomass-to-SNG and conversion of contaminated plastics to clean energy.

 

The complete pipeline of opportunities for EQTEC includes over 200 potential projects in markets around the world.

 

Use of proceeds

 

In order to maintain its momentum for growth, support near-term cash flow and accelerate implementation of its strategy, the Group seeks to raise a minimum of £3 million (before expenses) for:

 

· Maintaining momentum.   These investments are aimed at completing construction of plants and especially of demonstration plants, as well as deployment of new technology solutions for hydrogen, SNG and complex feedstocks such as RDF and contaminated plastics.  These investments will support greater awareness and interest in EQTEC technology with funders, owner-operators, partners and policymakers.

 

· Accelerating growth.   These investments are aimed at extending the development of target markets and solutions, through second and/ or third projects in existing markets including the USA, UK, Croatia and Greece, as well as investment in development of operations in EQTEC's target markets. Particularly in France the Company is also seeking to acquire a decommissioned plant from a liquidation process that if successful will be recommissioned using EQTEC's technology.

 

· Building for scale.   These investments are aimed at building capability and capacity across the Group business and especially in the Engineering teams to support the burgeoning pipeline and EQTEC's ability to take on an increasing number of projects.

 

Whilst the Fundraise is expected to enable the Company to monetise its existing projects and build resilience within its 2022 business plan, in the event that there is an unplanned deferral or delay in executing its pipeline of opportunities, the Company retains access to the balance of the unsecured £10 million loan facility announced on the 29 March 2022, not already drawn, in an amount of £5 million, should the need arise. The remaining £5 million requires the lenders' consent and is subject to customary conditions precedent as detailed in the facility agreement.

 

The Placing

 

The Company is seeking to a minimum of £3 million (before expenses) from the Placing of the Placing Shares and the subscription for PrimaryBid Shares and the Subscription Shares, in each case at the Issue Price. The Placing will be conducted through an accelerated bookbuild process which will be launched immediately following this Announcement and will be subject to the terms and conditions set out in Appendix I to this Announcement.

 

The final number of Placing Shares to be issued pursuant to the Placing will be agreed by the Company and the Joint Brokers at the close of the bookbuild and the results of the Placing will be announced as soon as practicable thereafter. The timing for the close of the bookbuild and the allocation of Placing Shares shall be at the absolute discretion of the Joint Brokers in consultation with the Company. The Company and the Joint Brokers reserve the right to issue and sell a greater or lesser number of shares through the Placing.

 

The Placing is conditional, inter alia, upon:

 

a)   the Placing Agreement becoming or being declared unconditional in all respects and not having been terminated in accordance with its terms prior to Admission;

 

b)  the Company having received signed Subscription Letters, together with the relevant subscription monies, from each of the Subscribers prior to Admission; and

 

c)   Admission becoming effective by no later than 8.00 a.m. on 19th  July 2022 or such later time and/or date as the Company and the Joint Brokers may agree, being no later than 8.00 a.m. on 2nd August 2022.

 

If any of the conditions of the Placing are not satisfied (or where applicable waived), the Placing Shares will not be issued and all monies received will be returned to the Placees at their own risk and without interest as soon as possible thereafter.

 

No element of the Placing is underwritten.

 

PrimaryBid Offer

 

PrimaryBid intends to conduct an offer for subscription for PrimaryBid Shares to raise up to £3 million on behalf of the Company on the terms set out in a separate announcement to be made by the Company immediately after this Announcement. 

 

The PrimaryBid Offer is conditional upon (amongst other things) the Placing Agreement not having been terminated and Admission occurring on or before 8.00 a.m. on 19th July 2022 (or such later date and /or time as the Company and the Joint Brokers may agree, being no later than 8.00 a.m. on 2nd August 2022).

 

Subscription and Director participation

 

Pursuant the Subscription, the Company proposes to issue approximately 513,000,000 Ordinary Shares at the Issue Price. The Subscription will be conditional (amongst other things) on Admission occurring on or before 8.00 a.m. on 19th July 2022 (or such later date and as the Company may determine, being no later than 8.00 a.m. on 2nd August 2022).

 

Certain of the Directors have indicated their intention to subscribe for approximately £185,000 in aggregate pursuant to the Subscription. Further details of such subscription will be set out in the announcement to be made following closure of the bookbuild process.

 

Issue of Ordinary Shares to strategic providers

 

The Company further announces that it is proposing to issue, in aggregate, 32,657,286 new Ordinary Shares (the "Supplier Shares") at the Issue Price to certain strategic service providers providing business development and advisory services to the Group in satisfaction of fees due to them. The issue of the Supplier Shares will further align the interests of strategic advisers and service providers with those of the Company and its shareholders.

 

Placing Agreement

 

Pursuant to the terms of the Placing Agreement, Canaccord and Arden, as agents for the Company, have conditionally agreed to severally use their respective reasonable endeavours to procure Placees for the Placing Shares. Canaccord and Arden intend to conditionally place the Placing Shares with investors at the Issue Price. The Placing Agreement is conditional upon, inter alia on Admission of the Placing Shares becoming effective on or before 8.00 a.m. on 19th July 2022 (or such later time and/or date as the Company and the Joint Brokers may agree, but in any event by no later than 8.00 a.m. on 2nd August 2022).

 

The Placing Agreement contains customary warranties from the Company in favour of the Joint Brokers in relation to, inter alia, the accuracy of the information in this Announcement and other matters relating to the Group and its business. In addition, the Company has agreed to indemnify the Joint Brokers in relation to certain liabilities that they may incur in respect of the Fundraising.

 

The Joint Brokers have the right to terminate the Placing Agreement in certain circumstances prior to Admission, including, inter alia, if any of the warranties given to the Joint Brokers in the Placing Agreement were not true or accurate in any material respect or were misleading when given or deemed given or  would no longer be true and accurate in any material respect, or would be misleading if repeated or deemed repeated , the failure of the Company to comply with certain of its obligations under the Placing Agreement, the occurrence of an event which materiall y (in the good faith opinion of the Joint Brokers) affects the financial position and/or prospects of the Group as a whole or any change in national or international financial, monetary, economic, political, environmental, or stock market conditions (including any material deterioration in, or material escalation in the response to, the Covid-19 pandemic) which, in the good faith opinion of the Joint Brokers will or is likely to be materially prejudicial to the Group or to the Placing or Admission or to the subscription for Placing Shares by Placees .

 

The Placing Agreement also provides for the Company to pay all costs, charges and expenses of, or incidental to, the Fundraising and Admission including all legal and other professional fees and expenses .

 

Admission

 

Application will be made to the London Stock Exchange for the New Shares, which will all rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM. Dealings in the New Shares are expected to commence on 8.00 a.m. on 19th July 2022 (or such later time and/or date as the Company and the Joint Brokers agree, being in any event no later than 8.00 a.m. on 2nd  August 2022).

 

IMPORTANT INFORMATION

 

This Announcement has been issued by, and is the sole responsibility, of the Company.  No representation or warranty express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Canaccord or Arden or by any of their respective affiliates or agents as to or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

 

NOTICE TO OVERSEAS PERSONS

 

This Announcement does not constitute, or form part of, a prospectus relating to the Company, nor does it constitute or contain any invitation or offer to any person, or any public offer, to subscribe for, purchase or otherwise acquire any shares in the Company or advise persons to do so in any jurisdiction, nor shall it, or any part of it form the basis of or be relied on in connection with any contract or as an inducement to enter into any contract or commitment with the Company. In particular, the New Shares have not been, and will not be, registered under the United States Securities Act of 1933 as amended or qualified for sale under the laws of any state of the United States or under the applicable laws of any of Canada, Australia, New Zealand, the Republic of South Africa or Japan and, subject to certain exceptions, may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) or to any national, resident or citizen of Canada, Australia, New Zealand, the Republic of South Africa or Japan.

 

The distribution or transmission of this Announcement and the offering of the New Shares in certain jurisdictions other than the UK may be restricted or prohibited by law or regulation. Persons distributing this Announcement must satisfy themselves that it is lawful to do so. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. No action has been taken by the Company that would permit an offering of such shares or possession or distribution of this Announcement or any other offering or publicity material relating to such shares in any jurisdiction where action for that purpose is required. Persons into whose possession this Announcement comes are required by the Company to inform themselves about, and to observe, such restrictions. In particular, this announcement may not be distributed, directly or indirectly, in or into the United States, Canada, Australia, New Zealand, the Republic of South Africa or Japan. Overseas Shareholders and any person (including, without limitation, nominees and trustees), who have a contractual or other legal obligation to forward this document to a jurisdiction outside the UK should seek appropriate advice before taking any action.

 

FORWARD-LOOKING STATEMENTS

 

This Announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include matters that are not historical facts. They appear in a number of places throughout this document and include statements regarding the Directors' current intentions, beliefs or expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies and the Group's markets.

 

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual results and developments could differ materially from those expressed or implied by the forward-looking statements.

 

Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this document are based on certain factors and assumptions, including the Directors' current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's operations, results of operations, growth strategy and liquidity. Whilst the Directors consider these assumptions to be reasonable based upon information currently available, they may prove to be incorrect. Save as required by law or by the AIM Rules, none of Arden, Canaccord the Company, nor their respective directors undertakes any obligation to publicly release the results of any revisions to any forward-looking statements in this document that may occur due to any change in the Directors' expectations or to reflect events or circumstances after the date of this document.

 

GENERAL

 

Canaccord, which is authorised and regulated by the FCA in the United Kingdom, is acting as Joint Broker to the Company in connection with the Fundraising. Canaccord will not be responsible to any person other than the Company for providing the protections afforded to clients of Canaccord or for providing advice to any other person in connection with the Fundraising, the Subscription or any acquisition of shares in the Company. Canaccord is not making any representation or warranty, express or implied, as to the contents of this Announcement. Canaccord has not authorised the contents of, or any part of, this Announcement, and no liability whatsoever is accepted by Canaccord for the accuracy of any information or opinions contained in this Announcement or for the omission of any material information.

 

Arden, which is authorised and regulated by the FCA in the United Kingdom, is acting as Joint Broker to the Company in connection with the Fundraising. Arden will not be responsible to any person other than the Company for providing the protections afforded to clients of Arden or for providing advice to any other person in connection with the Fundraising, the Subscription or any acquisition of shares in the Company. Arden is not making any representation or warranty, express or implied, as to the contents of this Announcement. Arden has not authorised the contents of, or any part of, this Announcement, and no liability whatsoever is accepted by Arden for the accuracy of any information or opinions contained in this Announcement or for the omission of any material information.

 

Strand Hanson, which is authorised and regulated by the FCA in the United Kingdom, is acting as Financial Adviser and Nominated Adviser to the Company in connection with the Fundraising. Strand Hanson has not authorised the contents of, or any part of, this Announcement, and no liability whatsoever is accepted by Strand Hanson for the accuracy of any information or opinions contained in this Announcement or for the omission of any material information. The responsibilities of Strand Hanson as the Company's Nominated Adviser under the AIM Rules for Companies and the AIM Rules for Nominated Advisers are owed solely to London Stock Exchange plc and are not owed to the Company or to any director or shareholder of the Company or any other person, in respect of its decision to acquire shares in the capital of the Company in reliance on any part of this Announcement, or otherwise.

 

The New Shares will not be admitted to trading on any stock exchange other than AIM.

 

Neither the content of the Company's website (or any other website) nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this Announcement.

 

INTERPRETATION

 

Certain terms used in this Announcement are defined under the heading "Definitions" in Appendix II of this Announcement.

 

All times referred to in this Announcement are, unless otherwise stated, references to London time.

All references to legislation in this Announcement are to the legislation of England and Wales unless the contrary is indicated. Any reference to any provision of any legislation or regulation shall include any amendment, modification, re-enactment or extension thereof.

 

Words importing the singular shall include the plural and vice versa, and words importing the masculine gender shall include the feminine or neutral gender and vice versa.

 

 

APPENDIX I

TERMS AND CONDITIONS OF THE PLACING

IMPORTANT INFORMATION FOR INVITED PLACEES ONLY REGARDING THE PLACING

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS ANNOUNCEMENT AND THESE TERMS AND CONDITIONS ARE FOR INFORMATION PURPOSES ONLY AND ARE DIRECTED ONLY AT PERSONS WHOSE ORDINARY ACTIVITIES INVOLVE THEM IN ACQUIRING, HOLDING, MANAGING AND DISPOSING OF INVESTMENTS (AS PRINCIPAL OR AGENT) FOR THE PURPOSES OF THEIR BUSINESS AND WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS AND ARE: (A) IF IN A MEMBER STATE OF THE EUROPEAN ECONOMIC AREA ("EEA"), QUALIFIED INVESTORS, BEING PERSONS FALLING WITHIN THE MEANING OF ARTICLE 2(e) OF REGULATION (EU) 2017/1129 AS AMENDED FROM TIME TO TIME ("EU PROSPECTUS REGULATION"); (B) IF IN THE UNITED KINGDOM, QUALIFIED INVESTORS, BEING PERSONS FALLING WITHIN THE MEANING OF ARTICLE 2(e) OF REGULATION (EU) 2017/1129 AS AMENDED FROM TIME TO TIME AND AS IT FORMS PART OF UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (THE "UK PROSPECTUS REGULATION"), WHO ARE PERSONS: (I) WHO FALL WITHIN ARTICLE 19(5) (INVESTMENT PROFESSIONALS) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER"); (II) WHO FALL WITHIN ARTICLE 49(2)(A) TO (D) (HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS, ETC.) OF THE ORDER; OR (III) TO WHOM THEY MAY OTHERWISE BE LAWFULLY COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS").

THIS ANNOUNCEMENT AND THESE TERMS AND CONDITIONS MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THESE TERMS AND CONDITIONS RELATE IS AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS.

EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO THE LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF A SUBSCRIPTION FOR OR PURCHASE OF THE PLACING SHARES.

Information to Distributors

Solely for the purposes of the product governance requirements contained within the FCA Handbook Product Intervention and Product Governance Sourcebook (the "UK Product Governance Rules"), and disclaiming all and any liability, whether arising in tort, contract, or otherwise, which any "manufacturer" (for the purposes of the UK Product Governance Rules) may otherwise have with respect thereto, the Placing Shares have been subject to a product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of investors who meet the criteria of professional clients and eligible counterparties, each as defined in the FCA Handbook Conduct of Business Sourcebook ("COBS"); and eligible for distribution through all distribution channels as are permitted by the UK Product Governance Rules (the "UK Target Market Assessment").

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("Directive 2014/65/EU"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; (c) local implementing measures; and/or (d) (where applicable to UK investors or UK firms) the relevant provisions of the UK MiFID Laws (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the Placing Shares have been subject to a product approval process, which has determined that the Placing Shares are: (i) compatible with an end target market of investors who meet the criteria of retail and professional clients and eligible counterparties, each as defined in Directive 2014/65/EU or the UK MiFID Laws, as applicable; and (ii) eligible for distribution through all distribution channels as are permitted by Directive 2014/65/EU or the UK MiFID Laws, as applicable (the "EUTarget Market Assessment").

Notwithstanding the UK Target Market Assessment and the EU Target Market Assessment, distributors should note that: the price of the Placing Shares may decline and investors could lose all or part of their investment; the Placing Shares offer no guaranteed income and no capital protection; and an investment in the Placing Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. Each of the UK Target Market Assessment and the EU Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Placing. Furthermore, it is noted that, notwithstanding the UK Target Market Assessment and the EU Target Market Assessment, the Joint Brokers will only procure investors who meet the criteria of professional clients and eligible counterparties each as defined under COBS or MiFID II, as applicable.

For the avoidance of doubt, each of the UK Target Market Assessment and the EU Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes Chapters 9A or 10A of COBS, or Directive 2014/65/EU or the UK MiFID Laws, as applicable; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the Placing Shares.

Each distributor is responsible for undertaking its own target market assessment in respect of the Placing Shares and determining appropriate distribution channels.

"UK MiFID Laws" means: 

(i) the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (SI 2017/701), The Data Reporting Services Regulations 2017 (SI 2017/699) and the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2017 (SI 2017/488), and any other implementing measure which operated to transpose EU MiFID II into UK law before 31 January 2020 (as amended and supplemented from time to time); and

(ii) the UK version of Regulation (EU) No 600/2014 of the European Parliament, which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented from time to time.

(a) Introduction

These terms and conditions apply to persons making an offer to acquire Placing Shares under the Placing. Each person to whom these terms and conditions apply, as described above, who confirms its agreement to either of the Joint Brokers, and the Company (whether orally or in writing) to acquire Placing Shares under the Placing (an "Investor") hereby agrees with the Joint Brokers and the Company to be bound by the trade confirmation issued by the relevant Joint Broker to such Investor and these terms and conditions, being the terms and conditions upon which Placing Shares will be sold under the Placing. An Investor shall, without limitation, become so bound if a Joint Broker confirms to such Investor its allocation of Placing Shares under the Placing.

Upon being notified of its allocation of Placing Shares in the Placing, an Investor shall be contractually committed to acquire the number of Placing Shares allocated to it at the Issue Price and, to the fullest extent permitted by law, will be deemed to have agreed not to exercise any rights to rescind or terminate or otherwise withdraw from such commitment. Dealing may not begin before any notification is made.

(b) Application for Admission

(c) Bookbuilding Process

Commencing today, the Joint Brokers will be conducting an accelerated bookbuilding process to determine demand for participation in the Placing by Placees (the "Bookbuilding Process"). This Announcement gives details of the terms and conditions of, and the mechanics of participation in, the Placing. However, the Joint Brokers will be entitled to effect the Placing by such alternative method to the Bookbuilding Process as it may, after consultation with the Company, determine. No commissions will be paid by or to Placees in respect of any participation in the Placing or subscription for Placing Shares.

(d) Participation in, and principal terms of, the Bookbuilding Process

(e) Conditions of the Placing

The Placing is conditional upon the Placing Agreement becoming unconditional and not having been terminated in accordance with its terms.

The obligations of the Joint Brokers under the Placing Agreement are conditional, among other things, upon:

(i) the Company complying with its obligations under the Placing Agreement to the extent that they fall to be performed on or before Admission;

(ii) the warranties on the part of the Company contained in the Placing Agreement being true and accurate and not misleading on and as of the date of the Placing Agreement and at Admission; 

(iii) the obligations of the Joint Brokers not having been terminated (as described below under "Right to terminate under the Placing Agreement");

(iv) the Company having received signed Subscription Letters, together with the relevant subscription monies, from each of the Subscribers prior to Admission ; and

(v) Admission of the Placing Shares, the PrimaryBid Shares and the Subscription Shares occurring not later than 8.00 a.m. on 19th July 2022 or such later time and/or date as the Joint Brokers and the Company may agree (but in any event not later than 2nd August 2022).

 

If (a) any of the Conditions of the Placing are not fulfilled (or to the extent permitted under the Placing Agreement waived by the Joint Brokers), or (b) the Placing Agreement is terminated in the circumstances specified below, the Placing will lapse and each Placee's rights and obligations hereunder shall cease and determine at such time and no claim may be made by a Placee in respect thereof. None of Canaccord or Arden, any Canaccord Affiliate or Arden Affiliate, the Company, nor any subsidiary or subsidiary undertaking of the Company, nor any branch, affiliate or associated undertaking of any such company nor any of their respective directors, partners, consultants, officers and employees (each an "EQTEC Affiliate") shall have any liability to any Placee (or to any other person whether acting on behalf of a Placee or otherwise) in respect of any decision it may make as to whether or not to waive or to extend the time and/or date for the satisfaction of any condition in the Placing Agreement or in respect of the Placing generally.

By participating in the Placing, each Placee agrees that the Joint Brokers' rights and obligations in respect of the Placing terminate, inter alia, in the circumstances described below under "Right to terminate under the Placing Agreement".

(f) Right to terminate under the Placing Agreement

(g) No prospectus

(h) Registration and settlement

Each Placee allocated Placing Shares in the Placing will be sent a trade confirmation stating the number of Placing Shares allocated to it, the Issue Price, the aggregate amount owed by such Placee to the relevant Joint Broker and settlement instructions. Placees should settle against the relevant Joint Broker's CREST ID shown above. It is expected that such trade confirmation will be despatched on the expected Trade Date shown above. Each Placee agrees that it will do all things necessary to ensure that delivery and payment is completed in accordance with either the standing CREST or certificated settlement instructions which it has in place with the relevant Joint Broker.

(i) Agreement to acquire Placing Shares

Conditional on: (i) Admission occurring and becoming effective by 8.00 a.m. (London time) on 19th  July 2022 (or such later time and/or date as the Company and the Joint Brokers may agree being no later than 8.00 a.m. (London time) on 2nd August 2022) and on the Placing Agreement being otherwise unconditional in all respects and not having been terminated in accordance with its terms on or before Admission; and (ii) the confirmation mentioned under paragraph (a) above, an Investor agrees to become a member of the Company and agrees to acquire Placing Shares at the Issue Price. The number of Placing Shares acquired by such Investor under the Placing shall be in accordance with the arrangements described above.

(j) Payment for Placing Shares

Each Investor undertakes to pay the Issue Price for each of the Placing Shares acquired by such Investor in such manner as shall be directed by the relevant Joint Broker. In the event of any failure by an Investor to pay as so directed by the relevant Joint Broker , the relevant Investor shall be deemed hereby to have appointed the relevant Joint Broker or its nominee to sell (in one or more transactions) any or all of the Placing Shares in respect of which payment has not been made as so directed by the relevant Joint Broker and to have agreed to indemnify on demand the relevant Joint Broker in respect of any liability for stamp duty and/or stamp duty reserve tax arising in respect of any such sale or sales.

(k) Representations and warranties

By receiving this Announcement, each Investor and, to the extent applicable, any person confirming his agreement to acquire Placing Shares on behalf of an Investor or authorising the Joint Brokers to notify an Investor's name to the Registrars, is deemed to acknowledge, agree, undertake, represent and warrant to each of Canaccord, Arden, the Registrars and the Company that:

(i)    the Investor has read and understood this Announcement in its entirety and acknowledges that its participation in the Placing shall be made solely on the terms and subject to the conditions set out in these terms and conditions, the Placing Agreement and the Articles. Such Investor agrees that these terms and conditions and the trade confirmation issued by the relevant Joint Broker to such Investor represent the whole and only agreement between the Investor, the relevant Joint Broker and the Company in relation to the Investor's participation in the Placing and supersede any previous agreement between any of such parties in relation to such participation. Accordingly, all other terms, conditions, representations, warranties and other statements which would otherwise be implied (by law or otherwise) shall not form part of these terms and conditions. Such Investor agrees that none of the Company, Canaccord, Arden, nor any of their respective officers or directors will have any liability for any such other information or representation and irrevocably and unconditionally waives any rights it may have in respect of any such other information or representation;

(ii)    the content of this Announcement is exclusively the responsibility of the Company and the Directors and that neither the Joint Brokers nor any person affiliated with the Joint Brokers or acting on their behalf is responsible for or shall have any liability for any information, representation or statement contained in this Announcement or any information previously published by or on behalf of the Company or any member of the Group and will not be liable for any decision by the Investor to participate in the Placing based on any information, representation or statement contained in this Announcement or otherwise;

(iii)    the Investor has not relied on the Company, Canaccord, Arden or any person affiliated with the Company or Canaccord or Arden in connection with any investigation of the accuracy of any information contained in this Announcement or its investment decision;

(iv)    in agreeing to acquire Placing Shares under the Placing, the Investor is relying on this Announcement and not on any draft thereof or other information or representation concerning the Group, the Placing or the Placing Shares. Such Investor agrees that neither the Company, Canaccord, Arden nor their respective officers, directors, partners, consultants or employees will have any liability for any such other information or representation and irrevocably and unconditionally waives any rights it may have in respect of any such other information or representation;

(v)    neither of the Joint Brokers are making any recommendations to Investors or advising any of them regarding the suitability or merits of any transaction they may enter into in connection with the Placing and the Investor acknowledges that its participation in the Placing is on the basis that it is not and will not be a client of either Joint Broker and that the Joint Brokers are acting for the Company and no one else, that the Joint Brokers will not be responsible to anyone else for the protections afforded to their respective clients, that the Joint Brokers will not be responsible for anyone other than the Company for providing advice in relation to the Placing, the contents of this Announcement or any transaction, arrangements or other matters referred to herein, and that the Joint Brokers will not be responsible for anyone other than the relevant party under the Placing Agreement in respect of any representations, warranties, undertakings or indemnities contained in the Placing Agreement or for the exercise or performance of the Joint Brokers' rights and obligations thereunder, including any right to waive or vary any condition or exercise any termination right contained therein;

(vi)    save in the event of fraud on their part (and to the extent permitted by the rules of the FCA), neither Joint Broker nor any of their respective directors or employees shall be liable to the Investor for any matter arising out of the role of the Joint Brokers as the Company's joint brokers or otherwise, and that where any such liability nevertheless arises as a matter of law the Investor will immediately waive any claim against the Joint Brokers and any of their respective directors and employees which an Investor may have in respect thereof;

(vii)    the Investor has complied with all applicable laws and the Investor will not infringe any applicable law as a result of its agreement to acquire Placing Shares under the Placing and/or acceptance thereof or any actions arising from the Investor's rights and obligations under the Investor's agreement to acquire Placing Shares under the Placing and/or acceptance thereof or under the Articles;

(viii)   all actions, conditions and things required to be taken, fulfilled and done (including the obtaining of necessary consents) in order: (i) to enable the Investor lawfully to enter into, and exercise its rights and perform and comply with its obligations to acquire the Placing Shares under the Placing; and (ii) to ensure that those obligations are legally binding and enforceable, have been taken, fulfilled and done. The Investor's entry into, exercise of its rights and/or performance under, or compliance with its obligations under the Placing, does not and will not violate: (a) its constitutional documents; or (b) any agreement to which the Investor is a party or which is binding on the Investor or its assets;

(ix)    it understands that no action has been or will be taken in any jurisdiction by the Company,  Canaccord, Arden or any other person that would permit a public offering of the Placing Shares, or possession or distribution of this Announcement, in any country or jurisdiction where action for that purpose is required; and that, if the Investor is in a relevant EEA member state, it is: (i) a Qualified Investor; (ii) otherwise permitted by law to be offered and sold Placing Shares in circumstances which do not require the publication by the Company of a prospectus pursuant to Article 3 of the EU Prospectus Regulation or other applicable laws; or (iii) in the case of any Placing Shares acquired by the Investor as a financial intermediary, as that term is used in Article 5(1) of the EU Prospectus Regulation, either: 

1.    the Placing Shares acquired by it in the Placing have not been acquired on behalf of, nor have they been acquired with a view to their placing or resale to, persons in any relevant member state other than Qualified Investors, or in circumstances in which the prior consent of the Joint Brokers has been given to the placing or resale; or

2.    where Placing Shares have been acquired by it on behalf of persons in any relevant member state other than Qualified Investors, the placing of those Placing Shares to it is not treated under the EU Prospectus Regulation as having been made to such persons;

(x)    to the fullest extent permitted by law, the Investor acknowledges and agrees to the disclaimers contained in this Announcement and acknowledges and agrees to comply with the selling restrictions set out in this Announcement;

(xi)    the Placing Shares have not been and will not be registered under the Securities Act or under the securities legislation of, or with any securities regulatory authority of, any state or other jurisdiction of the United States or under the applicable securities laws of Canada, Australia, New Zealand, the Republic of South Africa or Japan or where to do so may contravene local securities laws or regulations;

(xii)    the Investor is, and at the time the Placing Shares are acquired will be, located outside the United States and eligible to participate in an "offshore transaction" as defined in and in accordance with Regulation S;

(xiii)   the Investor is not acquiring the Placing Shares as a result of any "directed selling efforts" as defined in Regulation S or as a result of any form of general solicitation or general advertising (within the meaning of Rule 502(c) of Regulation D under the Securities Act); 

(xiv)   if it is acquiring the Placing Shares for the account of one or more other persons, it has full power and authority to make the representations, warranties, agreements and acknowledgements herein on behalf of each such account;

(xv)    the Investor is acquiring the Placing Shares for investment purposes only and not with a view to any resale, distribution or other disposition of the Placing Shares in violation of the Securities Act or any other United States federal or applicable state securities laws;

(xvi)   the Company is not obliged to file any registration statement in respect of resales of the Placing Shares in the United States with the US Securities and Exchange Commission or with any state securities administrator;

(xvii)   the Company, and any registrar or transfer agent or other agent of the Company, will not be required to accept the registration of transfer of any Placing Shares acquired by the Investor, except upon presentation of evidence satisfactory to the Company that the foregoing restrictions on transfer have been complied with;

(xviii)   the Investor invests in or purchases securities similar to the Placing Shares in the normal course of its business and it has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Placing Shares; 

(xix)   the Investor has conducted its own investigation with respect to the Company and the Placing Shares and has had access to such financial and other information concerning the Company and the Placing Shares as the Investor deemed necessary to evaluate the merits and risks of an investment in the Placing Shares, and the Investor has concluded that an investment in the Placing Shares is suitable for it or, where the Investor is not acting as principal, for any beneficial owner of the Placing Shares, based upon each such person's investment objectives and financial requirements;

(xx)    the Investor or, where the Investor is not acting as principal, any beneficial owner of the Placing Shares, is able to bear the economic risk of an investment in the Placing Shares for an indefinite period and the loss of its entire investment in the Placing Shares;

(xxi)   there may be adverse consequences to the Investor under tax laws in other jurisdictions resulting from an investment in the Placing Shares and the Investor has made such investigation and has consulted such tax and other advisors with respect thereto as it deems necessary or appropriate;

(xxii)   the Investor is not a resident of the United States, Canada, Australia, New Zealand the Republic of South Africa or Japan or any other Restricted Jurisdiction and acknowledges that the Placing Shares have not been and will not be registered nor will a prospectus be prepared in respect of the Placing Shares under the securities legislation of the United States, Canada, Australia, New Zealand, the Republic of South Africa or Japan and, subject to certain exceptions, the Placing Shares may not be offered or sold, directly or indirectly, in or into those jurisdictions;

(xxiii)   the Investor is liable for any capital duty, stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto) payable outside the UK by it or any other person on the acquisition by it of any Placing Shares or the agreement by it to acquire any Placing Shares;

(xxiv)   in the case of a person who confirms to the relevant Joint Broker on behalf of an Investor an agreement to acquire Placing Shares under the Placing and/or who authorises the relevant Joint Broker to notify such Investor's name to the Registrars, that person represents that he has authority to do so on behalf of the Investor;

(xxv)   the Investor has complied with its obligations in connection with money laundering and terrorist financing under the Proceeds of Crime Act 2002, the Terrorism Act 2000 and the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ("Money Laundering Regulations 2017") and any other applicable law concerning the prevention of money laundering and, if it is making payment on behalf of a third party, that: (i) satisfactory evidence has been obtained and recorded by it to verify the identity of the third party; and (ii) arrangements have been entered into with the third party to obtain from the third party copies of any identification and verification data immediately on request as required by the Money Laundering Regulations 2017 and, in each case, agrees that pending satisfaction of such obligations, definitive certificates (or allocation under the CREST system) in respect of the Placing Shares comprising the Investor's allocation may be retained at the relevant Joint Brokers' discretion;

(xxvi)   the Investor agrees that, due to anti-money laundering and the countering of terrorist financing requirements, the Joint Brokers and/or the Company may require proof of identity of the Investor and related parties and verification of the source of the payment before the application can be processed and that, in the event of delay or failure by the Investor to produce any information required for verification purposes, the Joint Brokers and/or the Company may refuse to accept the application and the moneys relating thereto. The Investor holds harmless and will indemnify the Joint Brokers and/or the Company against any liability, loss or cost ensuing due to the failure to process this application, if such information as has been required has not been provided by it or has not been provided on a timely basis;

(xxvii) the Investor is not, and is not applying as nominee or agent for, a person which is, or may be, mentioned in any of sections 67, 70, 93 and 96 of the Finance Act 1986 (depository receipts and clearance services);

(xxviii) the Investor has complied with and will comply with all applicable provisions of FSMA with respect to anything done by the Investor in relation to the Placing in, from or otherwise involving the UK;

(xxix)   if the Investor is in the UK, the Investor is a person: (i) who has professional experience in matters relating to investments falling within article 19(5) of the Order; or (ii) a high net worth entity falling within article 49(2)(a) to (d) of the Order; or (iii) is a person to whom this Announcement may otherwise be lawfully communicated, and in all cases is capable of being categorised as a Professional Client or Eligible Counterparty for the purposes of the Financial Conduct Authority Conduct of Business Rules;

(xxx)   if the Investor is in the EEA, the person is a "Professional Client/Eligible Counterparty" within the meaning of Annex ll/Article 30 (2) of MiFID and is not participating in the Placing on behalf of persons in the EEA other than professional clients or persons in the UK and other Member States (where equivalent legislation exists) for whom the Investor has authority to make decisions on a wholly discretionary basis;

(xxxi)  each Investor in the UK who acquires any Placing Shares under the Placing contemplated hereby will be deemed to have represented, warranted and agreed with each of the Joint Brokers and the Company that: (i) it is a qualified investor within the meaning of Article 2(e) of the UK Prospectus Regulation; and (ii) in the case of any Placing Shares acquired by it as a financial intermediary, as that term is used in Article 5(1) of the UK Prospectus Regulation: (A) the Placing Shares acquired by it in the Placing have not been acquired on behalf of, nor have they been acquired with a view to their offer or resale to, persons in the UK other than qualified investors, as that term is defined in the UK Prospectus Regulation, or in other circumstances falling within Article 5(1) of the UK Prospectus Regulation and the prior consent of the Joint Brokers has been given to the offer or resale; or (B) where Placing Shares have been acquired by it on behalf of persons in the UK other than qualified investors, the offer of those Placing Shares to it is not treated under the UK Prospectus Regulation as having been made to such persons;

(xxxii) each Investor in a relevant member state of the EEA who acquires any Placing Shares under the Placing contemplated hereby will be deemed to have represented, warranted and agreed with each of the Joint Brokers and the Company that: (i) it is a qualified investor within the meaning of the law in that relevant member state implementing Article 2(e) of the EU Prospectus Regulation; and (ii) in the case of any Placing Shares acquired by it as a financial intermediary, as that term is used in Article 5(1) of the EU Prospectus Regulation: (A) the Placing Shares acquired by it in the Placing have not been acquired on behalf of, nor have they been acquired with a view to their offer or resale to, persons in any relevant member state other than qualified investors, as that term is defined in the EU Prospectus Regulation, or in other circumstances falling within Article 5(1) of the EU Prospectus Regulation and the prior consent of the Joint Brokers has been given to the offer or resale; or (B) where Placing Shares have been acquired by it on behalf of persons in any relevant member state other than qualified investors, the offer of those Placing Shares to it is not treated under the EU Prospectus Regulation as having been made to such persons;

(xxxiii)   represents and warrants that its participation in the Placing would not give rise to an offer being required to be made by it or any person with whom it is acting in concert pursuant to Rule 9 of the Irish Takeover Code;

(xxxiv) in the case where the Investor confirms to a Joint Broker an agreement to acquire Placing Shares under the Placing on behalf of a third party, the terms on which the Investor (or any person acting on its behalf) is engaged enable it to make investment decisions in relation to securities on that third party's behalf without reference to that third party;

(xxxv)  the exercise by the Joint Brokers of any rights or discretions under the Placing Agreement shall be within their absolute discretion and the Joint Brokers need not have any reference to the Investor and shall have no liability to the Investor whatsoever in connection with any decision to exercise or not to exercise or to waive any such right and the Investor agrees that it shall have no rights against the Joint Brokers or any of their respective directors or employees under the Placing Agreement;

(xxxvi) it irrevocably appoints any director of the relevant Joint Broker as its agent for the purposes of executing and delivering to the Company and/or its registrars any documents on its behalf necessary to enable it to be registered as the holder of any of the Placing Shares agreed to be taken up by it under the Placing and otherwise to do all acts, matters and things as may be necessary for, or incidental to, its acquisition of any Placing Shares in the event of its failure so to do;

(xxxvii) it will indemnify and hold the Company, the Joint Brokers and their respective affiliates harmless from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, acknowledgements, agreements and undertakings in this paragraph and further agrees that the provisions of this paragraph will survive after completion of the Placing;

(xxxviii) the Joint Brokers may, in accordance with applicable legal and regulatory provisions, engage in transactions in relation to the Placing Shares and/or related instruments for their own account and, except as required by applicable law or regulation, the Joint Brokers will not make any public disclosure in relation to such transactions; and

(xxxix)  the Joint Brokers and each of their respective affiliates, each acting as an investor for its or their own account(s), may bid or subscribe for and/or purchase Placing Shares and, in that capacity, may retain, purchase, offer to sell or otherwise deal for its or their own account(s) in the Placing Shares, any other securities of the Company or other related investments in connection with the Placing or otherwise. Accordingly, references in this Announcement to the Placing Shares being offered, subscribed, acquired or otherwise dealt with should be read as including any offer to, or subscription, acquisition or dealing by the Joint Brokers and/or any of their respective affiliates, acting as an investor for its or their own account(s). Neither the Joint Brokers nor the Company intend to disclose the extent of any such investment or transaction otherwise than in accordance with any legal or regulatory obligation to do so.

The Company and the Joint Brokers will rely upon the truth and accuracy of each of the foregoing representations, warranties and undertakings.

(l) Supply and disclosure of information

If any of the Joint Brokers, the Registrars or the Company or any of their respective agents request any information about an Investor's agreement to acquire Placing Shares, such Investor must promptly disclose it to them and ensure that such information is complete and accurate in all respects.

(m) Miscellaneous

The rights and remedies of the Joint Brokers, the Registrars and the Company under these terms and conditions are in addition to any rights and remedies which would otherwise be available to each of them, and the exercise or partial exercise of one will not prevent the exercise of others.

(i)    On application, each Investor may be asked to disclose, in writing or orally to the relevant Joint Broker:

1.    if he is an individual, his nationality; or

2.    if he is a discretionary fund manager, the jurisdiction in which the funds are managed or owned.

(ii)      All documents will be sent at the Investor's risk. They may be sent by post to such Investor at an address notified to the relevant Joint Broker.

(iii)    Each Investor agrees to be bound by the Articles (as amended from time to time) once the Placing Shares which such Investor has agreed to acquire have been acquired by such Investor.

(iv)    These provisions may be waived, varied or modified as regards specific Investors or on a general basis by the Joint Brokers.

(v)    The contract to acquire Placing Shares and the appointments and authorities mentioned herein will be governed by, and construed in accordance with, the laws of England and Wales. For the exclusive benefit of Canaccord, Arden, the Company and the Registrars, each Investor irrevocably submits to the exclusive jurisdiction of the English courts in respect of these matters. This does not prevent an action being taken against an Investor in any other jurisdiction.

(vi)    In the case of a joint agreement to acquire Placing Shares, references to an "Investor" in these terms and conditions are to each of such Investors and such joint Investors' liability is joint and several.

(vii)    The Joint Brokers and the Company each expressly reserve the right to modify the Placing (including, without limitation, its timetable and settlement) at any time before allocations of Placing Shares under the Placing are determined.

(viii)      The Placing is subject to the satisfaction of the conditions contained in the Placing Agreement and the Placing Agreement not having been terminated.

 

APPENDIX II

DEFINITIONS

Admission

the admission of the New Shares to trading an AIM in accordance with the AIM Rules

AIM

AIM, a market operated by the London Stock Exchange

AIM Rules

the rules of AIM as set out in the publication entitled 'AIM Rules for Companies' published by London Stock Exchange from time to time

Announcement

this announcement, including the appendices

Arden

Arden Partners plc, a company incorporated in England and Wales with registered number 04427253 and having its registered office at 5 George Road, Edgbaston, Birmingham, England, B15 1NP, the Company's Joint Broker

Articles

the articles of association of the Company in force from time to time

Board or the Directors

the board of directors of the Company as at the date of this Announcement

Canaccord

Canaccord Genuity Limited, a company incorporated in England and Wales with registered number 01774003 and having its registered office at 88 Wood Street, London, EC2V 7QR, the Company's Joint Broker

Company

 

EQTEC plc, a company incorporated in Ireland with registered number 462861 and having its registered office at 1000 Citygate, Mahon, Cork T12 W7CV, Ireland

CREST

 

the relevant system (as defined in the CREST Regulations) in respect of which Euroclear UK & Ireland Limited is the Operator (as defined in the CREST Regulations)

CREST Regulations

the Uncertified Securities Regulations 2001 (SI 2001/3755), as amended

FCA

the Financial Conduct Authority

Fundraising

the proposed Placing, PrimaryBid Offer and Subscription

Group

the Company and its subsidiaries

Investor

a person a who confirms its agreement to Canaccord or Arden, as applicable, (whether orally or in writing) to acquire Placing Shares under the Placing

Irish Takeover Code

the Irish Takeover Panel Act 1997, Takeover Rules 2013

Issue Price

0.5 pence per New Share

Joint Brokers

Canaccord and Arden and "Joint Broker" shall be construed accordingly

London Stock Exchange

London Stock Exchange plc

New Shares

the Placing Shares, the PrimaryBid Shares, the Subscription Shares and the Supplier Shares

Ordinary Shares

the ordinary shares of €0.001 each in the Company

Overseas Shareholders

 

those Shareholders with registered addresses outside the UK or who are incorporated in, registered in or otherwise resident or located in, countries outside the UK

Placees

subscribers of Placing Shares

Placing

the placing of the Placing Shares by the Joint Brokers with Placees at the Issue Price

Placing Agreement

the agreement dated 13th July 2022 entered into between the Company and the Joint Brokers in respect of the Placing

Placing Shares

such number of new Ordinary Shares (or CREST depositary interests representing such shares) to be issued pursuant to the Placing, the final number of which will be confirmed on completion of the bookbuilding process

PrimaryBid

means PrimaryBid Limited, a limited company registered in England and Wales (No. 08092575) with its registered office at 21 Albemarle Street, London W1S 4BS

PrimaryBid Offer

the offer for subscription of PrimaryBid Shares to be undertaken by PrimaryBid on behalf of the Company subject to, inter alia, Admission

PrimaryBid Shares

the new Ordinary Shares (or CREST depositary interests representing such shares) to be allotted and issued pursuant to the PrimaryBid Offer

Registrars

Link Asset Services of 2 Grand Canal Square, Dublin 2, Ireland

Regulation S

Regulation S under the Securities Act

Regulatory Information Service

has the meaning given in the AIM Rules

Securities Act

United States Securities Act of 1933

Shareholders

the holders of Ordinary Shares

Strand Hanson

Strand Hanson Limited, a company incorporated in England and Wales with registered number 02780169 and having its registered office at 26 Mount Row, London, W1K 3SQ, the Company's Nominated and Financial Adviser

Subscribers

means a person subscribing for the Subscription Shares pursuant to the Subscription

Subscription

the proposed direct subscription with the Company for the Subscription Shares at the Issue Price

Subscription Letter(s)

means the subscription letter(s) entered into by the Subscribers in respect of the Subscription

Subscription Shares

the new Ordinary Shares (or CREST depositary interests representing such shares) which may be allotted and issued pursuant to the Subscription

Supplier Shares

the 32,657,286 new Ordinary Shares (or CREST depositary interests representing such shares) which are proposed to be issued to certain suppliers to the Company at the Issue Price in satisfaction of amounts due to them for services provided to the Group

UK or United Kingdom

the United Kingdom of Great Britain and Northern Ireland

US or United States

the United States of America, its territories and possessions, any state of the United States of America and the District of Columbia

 

 

 

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 or visit 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.
 
END
 
 
IOEEASXDFLXAEFA

Companies

Eqtec (CDI) (EQT)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today