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(Alliance News) - Eqtec PLC on Tuesday said it conditionally raised around GBP3.5 million before expenses via an equity fundraise in new shares.
Eqtec is an AIM-listed technology innovator focusing on distributed, decarbonised, new energy infrastructure via waste-to-value solutions for hydrogen, biofuels, and energy generation.
It said the fundraise was via placing and direct subscriptions with the company by institutional and other investors at a price of 0.22 pence per unit, with each unit comprising one new share in the company and one half of one share purchase warrant. Each full warrant is exercisable at 0.33p per share.
Shares in Eqtec were down 26% to 0.21p each in London on Tuesday morning.
The net proceeds of the placing will be used for progressing Eqtec's market development centres, maintaining business continuity, driving new research and development, alongside settling a proportion of the group's debt.
Eqtec announced the reprofiling of existing loan facilities including the conversion of certain existing debt into equity, alongside the settlement of strategic supplier fees in new shares, both at the placing price.
It also appointed Global Investment Strategy UK Ltd as its placing agent to raise up to an additional gross GBP550,000 via a broker option. Existing shareholders may apply to Global Investment Strategy for units under the broker option until Friday next week.
"This targeted placing is focused on supporting strategic execution in 2023. With the Italia MDC [gasification plant] now operational, we have turned our attention to Croatia and France, growing our portfolio of well-established and highly credible partners who are developing projects and deploying Eqtec's Industrial, Utility and Municipal business solutions," said Chief Executive Officer David Palumbo said.
"Demand remains strong, and focused execution remains imperative in the current, uncertain market. We look forward to updating shareholders as our solutions and brand gain global traction and the business grows accordingly."
By Greg Rosenvinge, Alliance News reporter
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