EQTEC PLC Convertible Loan Agreements (7172T)
October 16 2017 - 8:29AM
UK Regulatory
TIDMEQT
RNS Number : 7172T
EQTEC PLC
16 October 2017
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY IN OR INTO ANY JURISDICTION WHERE TO
DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION.
16 October 2017
EQTEC PLC
("EQTEC", "Company" or the "Group")
Convertible Loan Agreements
EQTEC PLC (AIM: EQT), the technology solution company for waste
gasification to energy projects, announces that the Company has
entered into agreements pursuant to which an existing lender (the
"Existing Lender") and a new lender (the "New Lender") have agreed
to make interest free unsecured loans of an aggregate amount of
GBP225,000 to EQTEC (the "Convertible Loans"). Such loans will
convert into new Ordinary Shares on the earlier of the date of
Completion (as defined in the announcement of 17 July 2017) and 31
December 2017 (the Longstop Date"). The Company will also grant
warrants over Ordinary Shares ("Warrants") to the lenders at the
time of conversion of the Convertible Loans.
Convertible Loans
The Company and the Existing Lender, who is an existing
shareholder of the Company, are parties to a loan agreement dated
17 July 2017 (the "Original Loan Agreement") pursuant to which the
Existing Lender has lent the Company GBP300,000. The terms of that
loan are set out in the Company's announcement of 17 July 2017. The
Company and the Existing Lender have agreed to terminate the
Original Loan Agreement and have entered into a new agreement
pursuant to which the parties have agreed the original GBP300,000
is treated as having been advanced pursuant to the terms of that
agreement and the Existing Lender has agreed to make an additional
GBP200,000 loan to the Company on or before 19 October 2017. The
Company has also entered into an agreement with the New Lender, who
is not an existing Shareholder of the Company, pursuant to which
the New Lender has agreed to make a GBP25,000 loan to the Company
on or before 19 October 2017.
The Convertible Loans are unsecured and non-interest bearing.
The Convertible Loans will convert into Conversion Shares on the
earlier of the date of Completion and the Longstop Date. The
Convertible Loans will automatically convert into the Conversion
Shares at 1 pence per share.
On the date of conversion of the Convertible Loans the lenders
will also be granted Warrants for such number of new ordinary
shares as is equal to the number of Conversion Shares issued. The
Warrants will be exercisable for a period of two years from the
date of grant. The exercise price of the Warrants will be 2.2 pence
per share if the conversion event is Completion or 1.5 pence per
share if the Convertible Loans convert on the Longstop Date.
Unless otherwise defined all capitalised terms contained in this
announcement shall have the same meaning as in the announcement on
17 July 2017.
Enquiries
EQTEC PLC +353 (0)21 2409 056
Gerry Madden / Brendan
Halpin
VSA Capital Limited
Financial Adviser and
Broker +44 (0)20 3005 5000
Andrew Monk / Andrew Raca
ZAI Corporate Finance
Limited
Nominated Adviser +44 (0)20 3005 5000
John Treacy / Luis Brime
Luther Pendragon
Financial PR +44 (0)20 7618 9100
Harry Chathli / Ana Ribeiro
/ Alexis Gore
This information is provided by RNS
The company news service from the London Stock Exchange
END
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