28 May 2024
EQTEC plc
("EQTEC",
the "Company" or the "Group")
Equity placement of c.
£850,000 gross proceeds
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 announce a fundraise
of c. £850,000 (gross) at 1.4 pence per ordinary share in the
Company (being a c. 18% discount to the closing price of 1.7 pence
on 24 May 2024, being the last business day prior to the Placing)
(the "Placing").
The Placing will result in the
issuance of 60,887,490 ordinary shares of €0.01 each in the Company
("Shares") to the
subscribers (the "Placing
Shares"). A further 2,435,499 new Shares are being issued in
settlement of certain fees in relation to the Placing ("Fee Shares"). The Placing has been
arranged by Fortified Securities.
The Placing has been undertaken via
direct subscription letters executed with the Company by the
subscribers (the "Subscribers"), who are regulated
stockbrokers. In aggregate the Subscribers have subscribed for
gross proceeds of c. £850,000.
The issuance of Placing Shares is
conditional upon cleared funding from the Subscribers, being
received by the Company on or around 29 May 2024, save for c.
£500,000 of the Placing which is to settle through Global
Investment Strategy UK Limited, an existing broker for the Company,
acting as a settlement agent, on or around 10 June 2024.
Application will be made for the
Placing Shares and Fee Shares to be admitted to AIM. A further
announcement will be made in relation to the dates of admission to
AIM of the new Shares to be issued.
The Placing Shares will be issued
under the Company's existing share authorities and represent the
entire remaining authorised share capital of the Company free of
pre-emption. The directors intend to seek further authority to
allot in due course at the next general meeting.
No portion of the Placing relates to
ordinary shares in the Company arising from the Syndicated CLN nor
any conversion of any of the debt pursuant to the Term Loan (each
term as defined and detailed in the Company's announcement of 23
May 2024). The Placing represents a new capital injection raised
for cash proceeds. No portion of the Placing will be used for
repayments of the Term Loan with the lenders having waived the
rights to any prepayment arising from the Placing.
The board intends for the proceeds
of the Placing to be used for the working capital for the
operations of the Company and, alongside existing cash balances and
the Logik settlement proceeds (as announced by the Company on 1 May
2024 and expected to be received by 28 June 2024), to support the
execution of the previously announced strategic pivot.
David Palumbo, CEO of EQTEC, commented:
"This Placing, alongside the
recently announced refinance through the Term Loan, provides the
Company with a clear capital runway to develop and execute the
previously announced strategic pivot. We look forward to updating
the market on upcoming pipeline developments and the closing of the
Logik settlement in due course. We thank our shareholders for their
continued support during this transitionary period."
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
|
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.