Drawdown on Facility & other funding updates

EQTEC PLC

08 May 2024

 

8 May 2024

EQTEC plc

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

Drawdown on Syndicated Facility and other funding updates

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, announces a further drawdown on its syndicated debt facilities and proposed reduction to balances outstanding under the long-term secured facility with YA II PN Ltd and Riverfort Global Opportunities PCC Limited (the "YA-RF Lenders").

Syndicated Facility Drawdown

On 20 November 2023, the Company announced that it had refinanced the historic debt facilities with Altair Group Investment Limited ("Altair"), the "YA-RF Lenders") and with Pitcole Limited (together, the "Refinance Investors") through entering into a new syndicated debt facility of up to £3.0 million with the Refinance Investors (the "New Syndicated Facility"), with £950,000 being drawn down in November 2023.

The Refinance Investors and the Company have agreed to a further advance of £245,000 pursuant to the terms of the New Syndicated Facility (the "Drawdown").

The Drawdown is intended to provide working capital in advance of the anticipated receipt of the proceeds from the settlement with Logik Developments, in particular the expected completion of the sale of land from which the settlement sum of £2.0 million will be paid to the Company. Further details regarding the sale of land, including the steps to completion, were announced on 1 May 2024.

In accordance with the terms of the New Syndicated Facility, the Refinance Investors will be granted an aggregate of 7,359,671 warrants in the Company with an exercise price of £0.02656 per Warrant (being 150% of the average of the 5 daily VWAPs prior to execution) and a 48-month term from grant.

As detailed in the Company's announcement on 13 February 2024, the Refinance Investors have agreed not to convert any of the balances outstanding pursuant to the New Syndicated Facility until 30 June 2024.

Upon the earlier of (a) the closing of the Verde Subscription (update announced on 19 April 2024) and (b) the closing of the Logik settlement, the Drawdown (inclusive of fees and coupon) will be repaid to the Refinance Investors.

Repayment and conversion for reduction of debt balances

In addition to the New Syndicated Facility, the YA-RF Lenders are party to a YA-RF Lenders secured facility of up to £10.0 million as detailed in the Company's announcement on 20 November 2023 (the "YA-RF Secured Facility"). No further funds have been advanced pursuant to the YA-RF Secured Facility which currently stands with £5.1 million drawn and no further fees have been accrued since that time. Upon the anticipated receipt of funds pursuant to the Logik settlement, 20% of the proceeds of the Logik settlement amounting to £400,000 will be paid to the YA-RF Lenders to reduce the balances outstanding pursuant to the YA-RF Secured Facility.

Riverfort Global Opportunities PCC Limited has agreed with the Company to convert part of the outstanding balances of the YA-RF Secured Facility by subscribing £200,000 for 12,802,031 shares in the Company at an issue price of 1.562p per share, representing a 5.3% discount to the mid-market closing price of 3 May 2024.

Admission and Total Voting Rights

The new Ordinary Shares pursuant to the conversion are being issued utilising the Company's existing share authorities and will rank pari passu  in all respects with the Company's existing Ordinary Shares.

Application will be made to the London Stock Exchange for admission of the 12,802,031 new Ordinary Shares being issued pursuant to the conversion and it is expected that Admission will become effective and that dealings in the new Ordinary Shares on AIM will commence at 8.00 a.m. on or around 13 May  2024.

Following Admission, there will be 194,287,921 Ordinary Shares in issue. The Company holds no Ordinary 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.

David Palumbo, CEO of EQTEC, commented:

"The additional funding from Altair, YA and RiverFort will provide us with the flexibility required to address working capital requirements, pending the anticipated Logik settlement payment. We thank our funders for their continued support."

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 David Palumbo / Jeffrey Vander Linden	[phone]
Strand Hanson - Nomad & Financial Adviser James Harris / Richard Johnson	[phone]
Fortified Securities - Broker   Guy Wheatley	[phone]
Global Investment Strategy UK Ltd - Broker   Samantha Esqulant	[phone]

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 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.

 

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