EQTEC PLC Partial repayment of Five-Year Loan Facility (3310C)
January 19 2018 - 2:00AM
UK Regulatory
TIDMEQT
RNS Number : 3310C
EQTEC PLC
19 January 2018
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
19 January 2018
EQTEC PLC
("EQTEC", "Company" or the "Group")
Partial repayment of Five-Year Loan Facility
EQTEC PLC (AIM: EQT), the technology solutions company for waste
gasification to energy projects, is pleased to announce that it has
made a partial repayment of GBP378,882 on its Secured Loan Facility
("SLF"), which comprises a five-year term loan of GBP1,000,000 at
15% per annum fixed rate of interest, with Ecofinance GLI Limited
("Ecofinance"). The SLF, commencing in 2015, was repayable in full
in July 2020. The Company, with the agreement of Ecofinance, has
decided to repay GBP378,882 of capital and GBP2,958 in accrued
interest to Ecofinance, earlier than scheduled, in order to reduce
the cost of debt to the Group. The remaining balance of GBP621,118
is repayable in July 2020.
Separately, as set out in its Admission Document published on 27
November 2017, the Company had also reached agreement to further
restructure its existing 7.5% GBP2,000,000 Convertible Secured Loan
Note ("CSLN") with Altair Group Investment Limited ("Altair"). The
CSLN was originally due for repayment with accrued interest on 14
July 2017. However, as set out in the Admission Document,
standstill agreements were entered into by both parties in July and
October 2017. As a result of the early repayment on the SLF, Altair
will become the sole beneficiary of the SLF and shareholder of
Ecofinance.
In accordance with those agreements, the CSLN was amended such
that (i) the maturity date of the CSLN is extended to 14 July 2020
(ii) the interest rate applicable to the CSLN is varied to 15% p.a.
(subject to a reduction in the interest rate for early repayment of
the CSLN) and (iii) the price at which the CSLN converts has been
amended to 0.585 pence per share. It was agreed that in
consideration of Altair agreeing to these changes to the CSLN,
after admission of EQTEC's enlarged share capital to trading on AIM
following the acquisition of Eqtec Iberia SL, which occurred on 28
December 2017, the Company would grant to Altair warrants to
subscribe for 105,263,158 ordinary shares exercisable at 0.975
pence per share for a period of five years and that the Company
would pay Altair interest outstanding on the CSLN to July 2017 of
GBP300,000. The Company and Altair have agreed that this interest
payment will not now be paid until the earlier of the next capital
raise that may be conducted by the Company or 30 April 2018.
Pursuant to its pre-existing rights under CSLN instrument,
Altair has nominated a non-executive director to the Board of
Directors of EQTEC who will add to the experience and expertise
already available to the Company. A further announcement regarding
this appointment will be made once the appointment is
effective.
The Company looks forward to updating the market with further
information in due course.
Enquiries
+353 (0)21 2409
EQTEC plc 056
Luis Sanchez - Chief Executive Officer
Gerry Madden - Finance Director
Northland Capital Partners Limited +44 (0)20 3861
- Nomad and Joint Broker 6625
Dugald J. Carlean / Tom Price
+44 (0)20 3700
SVS Securities Plc - Joint Broker 0093
Tom Curran / Ben Tadd
+44 (0)20 3005
VSA Capital Limited - Joint Broker 5000
Andrew Monk / Andrew Raca
+44 (0)20 7618
Luther Pendragon - Financial PR 9100
Harry Chathli / Alexis Gore / Ana
Ribeiro
Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing
assistance in developing waste elimination projects to which it
will ultimately sell its EQTEC Gasifier Technology ("EGT"), and
O&M services. EGT enables project developers to construct waste
elimination plants converting the waste into electrical and thermal
energy. The high energy efficiency also provides project developers
with a competitive advantage allowing them to quote more
competitive gate fees for the waste supply.
EQTEC will source projects that have a local supply of waste in
need of conversion. It will build relationships and bring together
the developers, the waste owners, the building contractors and
funders and provide the technology and engineering services to the
projects. Furthermore, the Enlarged Group will provide O&M
services to the operating projects generating recurring revenues
over the life of the projects.
The Company is quoted on AIM and trades as EQT. Further
information on the Company can be found at www.eqtecplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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