TIDMEQT
RNS Number : 5301X
EQTEC PLC
21 December 2023
21 December 2023
EQTEC plc
("EQTEC", the "Company" or the "Group")
Update on Bank Refinance for Italy Market Development Centre
and Shareholders Conversion Notices
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, is pleased to provide an update on bank refinance for
its Italy Market Development Centre (the "Plant") and to confirm
that it has received two shareholder conversion notices pursuant to
the financial restructuring announced by the Company on 20 November
2023.
Refinance for Italy Market Development Centre
This update follows the Company's announcement on 4 September
2023 that it had entered into a loan facility of EUR2.9 million
(the "Facility") with Banca del Fucino S.p.A. (the "Lender") to
refinance the Plant.
The Company can now confirm that it has successfully completed
all performance improvements and achievement of performance
criteria set by the Lender. The Lender has not been available to
visit the Plant prior to the holiday period in December 2023,
however it has now arranged to visit in early January 2024. The
Company expects to be able to draw down the amount of the full
Facility shortly after that visit, and will make a further
announcement accordingly.
The Plant became operational in March 2023 and EQTEC completed
handover protocols and transfer of plant operations to EQTEC Italia
MDC Srl ("Italia MDC") i n June 2023. The Company remains actively
involved with supporting Italia MDC in its endeavours to drive more
productive and continual operations.
Shareholders conversion notices
The Company on 19 December 2023 received two conversion notices
pursuant to the Altair Group Investment Limited ("Altair") and
Pitcole Limited ("Pitcole") Settlement Agreements as set out in the
Company's announcement of 20 November 2023.
In light of the Company's capital reorganisation and share
consolidation, which completes today with admission to trading on
AIM of the Company's consolidated ordinary EUR0.01 shares
("Consolidated Shares"), the Pitcole Conversion Shares and Altair
Conversion Shares shall be issued in the form of Consolidated
Shares.
In accordance with the Pitcole Settlement Agreement, Pitcole has
elected to convert a remaining balance of GBP400,000 into
13,986,014 new Consolidated Shares in the Company ("Pitcole
Conversion Shares") at a price equal to the average of the daily
VWAPs for each of the five consecutive trading days immediately
prior to 18 December 2023 the date of the conversion notice which
was 2.86p (as adjusted for the share consolidation).
In accordance with the Altair Settlement Agreement, Altair has
elected to convert a remaining balance of the Altair Redemption Sum
of GBP562,500 into 19,667,832 new Consolidated Shares in the
Company ("Altair Conversion Shares") at a price equal to the
average of the daily VWAPs for each of the five consecutive trading
days immediately prior to 18 December 2023 the date of the
conversion notice which was 2.86p (as adjusted for the share
consolidation).
Upon conversion of this remaining balance under the Altair
Settlement Agreement, the Company is released from all liabilities
and obligations pursuant to the debt facility with Altair announced
on 09 December 2022.
Application will be made to the London Stock Exchange for both
the Pitcole Conversion Shares and the Altair Conversion Shares,
being in aggregate 33,653,846 new Consolidated Shares (the "New
Shares"), to be admitted to trading on AIM. Dealings in the New
Shares, which will all rank pari passu with the Company's
Consolidated Shares at that time, are expected to commence at 8.00
a.m. on or around 29 December 2023.
Following Admission, there will be 181,485,890 Consolidated
Shares in issue. The Company holds no Consolidated 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.
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 +44 20 3883 7009
Strand Hanson - Nomad & Financial Adviser
James Harris / Richard Johnson +44 20 7409 3494
----------------
Global Investment Strategy UK Ltd - Broker
Samantha Esqulant +44 20 7048 9045
----------------
Fortified Securities - Broker
Guy Wheatley +44 20 3411 7773
----------------
Panmure Gordon - Broker
John Prior / Hugh Rich +44 20 7886 2500
----------------
About EQTEC Italia MDC srl
EQTEC Italia MDC Srl ("Italia MDC") is a company registered in
Italy for the purpose of transforming agricultural and forestry
waste into electrical power and biochar in a relatively remote and
heaviliy agrarian community. The Company currently owns 49.0% of
Italia MDC, with an option to acquire further equity in future.
Italia MDC owns and operates a 1 MWe plant in Gallina (the
"Plant"), a village near Castiglione d'Orcia in Tuscany's Val
d'Orcia, an area considered to be the region's most scenic. It is
on a site originally owned by Toscana Cereali Societa' Cooperativa
Agricola, from whom Italia MDC is currently leasing and with whom
Italia MDC have agreed to purchase the land by 30 July 2024. With
EQTEC technology at its core, the Plant is capable of converting
multiple types of biomass feedstock into electrical power and
thermal energy.
Initially, the Plant is converting higher-density wood waste
into electrical power for export to the national grid, for which a
connection has been secured with a preferential tariff. In addition
to the electricity, the Plant is producing biochar for purchase by
two European wholesalers of the product. Thermal energy produced
through the continuous EQTEC thermochemical conversion process is
being recycled to dry the feedstock, improving the Plant's
waste-to-energy conversion efficiency.
Feedstock is being delivered by multiple suppliers, and Italia
MDC has identified additional, potential suppliers in order to
maintain continuity of supply and leverage over cost and
availability. Further, the Plant has been upgraded to support
lower-density feedstocks such as straw or other agricultural waste.
This ability to switch amongst feedstock types and suppliers adds
resilience to Italia MDC's business model.
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 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
.
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