REG - EQTEC PLC - Drawdown on Facility & other funding updates

EQTECAnnouncement

08/05/2024 08:30

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RNS Number : 5823N  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                                        +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 

 

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
(http://www.eqtec.com/) .

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