27 March 2018
EQTEC plc
("EQTEC" or the "Company")
Business and Financing Update
EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, provides an update on its business and on the £7.5m Unsecured Convertible Loan Note facility signed on 28 February 2018.
Since the beginning of the year, the Company has added two significant new potential projects to its pipeline. The Company has also signed two important partnership deals with major EPC contractors, COBRA and Rafako, to add to its existing partnership with Energy China. It is in the process of responding to requests for quotations on a range of near term projects both in the UK and overseas markets. In addition, the Company is looking at the opportunity of becoming an owner operator of smaller energy gasification sites.
The Board is encouraged by this progress and is actively exploring opportunities for further funding to replace the funds that would have been available from the Loan Note facility. This funding will be used to expand the engineering and commercial team in support of EQTEC's EPC partners, provide adequate working capital in all foreseeable circumstances, and enable future investments.
The Board believes EQTEC can become a leading gasification technology and services provider and is committed to further strengthening and expanding the Company's engineering capability to successfully deliver projects for its customers.
The 16 March decision not to draw down further on the Loan Note was taken by the Company in light of the negative market sentiment and share price reaction that followed the convertible loan note issue. It also received clear indications from the loan note investor of an unwillingness to proceed with further tranches under the circumstances. Discussions with the investor and their advisers for the redemption of existing amounts outstanding have ceased for the moment.
The Board of Directors has reviewed and reassessed the most up-to-date management plan, including the likely timing of revenues from projects, which may vary, and made necessary adjustments on the timing and amounts recoverable from historical trade receivables and other material cash flow matters, in order to support the growth of the business. In particular, the Board notes that the disposal of the Pluckanes wind turbine, which was at the final stages, has not completed and the Company is now in discussion with alternative potential acquirers.
Further announcements will be made as appropriate.
Enquiries
EQTEC plc |
+353 (0)21 2409 056 |
Luis Sanchez - Chief Executive Officer Gerry Madden - Finance Director |
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Northland Capital Partners Limited - Nomad and Joint Broker |
+44 (0)20 3861 6625 |
Tom Price / Dugald J. Carlean |
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SVS Securities Plc - Joint Broker |
+44 (0)20 3700 0093 |
Tom Curran / Ben Tadd |
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VSA Capital Limited - Financial Adviser and Joint Broker |
+44 (0)20 3005 5000 |
Andrew Monk / Andrew Raca |
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Luther Pendragon - Financial PR |
+44 (0)20 7618 9100 |
Harry Chathli / Alexis Gore / Ana Ribeiro |
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This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.
