Holdings in MetalNRG plc and Convertible Loan Note

07 October 2022

EQTEC plc

("EQTEC", the "Company" or the "Group")

Holdings in MetalNRG plc and Convertible Loan Note

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 that, further to the Framework Partnership Agreement with MetalNRG plc (LON: MNRG) ("MNRG") announced on 16 December 2021 and subsequent to the Company's receipt of 100,000,000 shares of MNRG in a share-for-share exchange, the Company acted as guarantor for a Convertible Loan Note entered into by MNRG on 02 February 2022 with Global Investment Strategy UK Limited ("GIS").

Further, and in satisfaction of the Company's guarantee obligations to GIS, the Company transferred £100,000 worth of MNRG shares to GIS (being 100,000,000 Ordinary Shares at an average price of 0.1p per share after costs) on 03 October 2022. On the basis of this transaction, the Company's obligations to GIS as guarantor were fully settled.

As a result of this transfer, the Company's holding in MNRG has decreased from 13.31% to 5.02% of the issued voting share capital.

In consideration of the Company's actions as guarantor, MNRG has subsequently issued £100,000 of zero-coupon, unsecured convertible loan notes to the Company (the "CLN"). The CLN gives the Company the right,  to convert the CLN, in whole or in part to MNRG shares either (i) at such time as MNRG has available share authority headroom, convertible at the closing, mid-market share price on the day prior to conversion; or (ii) if a prospectus is issued by MNRG, enabling MNRG to issue sufficient shares, convertible at the price at which any funds were raised by MNRG in connection with the issue of a prospectus.

The purpose of the CLN is to allow the Company to re-establish its equity position in MNRG at approximately the same level that existed prior to discharge of its GIS liability as guarantor on behalf of MNRG. The exact number of shares to be issued to the Company might be higher or lower than the number applied to satisfaction of the guarantee.

ENQUIRIES

About EQTEC plc 

As one of the world's most experienced gasification technology and engineering companies, with a growing track record of delivering operational and commercial success for transforming waste-to-energy through best-in-class technology innovation, engineering and project development, EQTEC brings together design innovation, project delivery discipline and solid commercial experience to add momentum to the global energy transition. 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, supplies and builds advanced gasification facilities in the UK, EU and US, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process over 50 varieties of feedstock, including forestry wood waste, vegetation and other agricultural waste from farmers, industrial waste and sludge from factories 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 synthetic 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.