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(Alliance News) - MetalNRG PLC on Friday said that Eqtec PLC transferred shares in the company to Global Investment Strategy UK Ltd as guarantor in a loan agreement.
MetalNRG is a London-based investor in natural resources and energy. Eqtec is a Cork, Ireland-based gasification company focused on turning waste into sustainable energy.
Under the terms of the agreement with Global Investment Strategy, agreed in February, Eqtec said it would to act as guarantor of MetalNRG's loan in case of late payment or default. On Monday, Eqtec transferred GBP100,000 worth of MetalNRG's shares to Global Investment Strategy in satisfaction of its obligations.
As a result Eqtec's holding in MetalNRG has decreased to 5.0% from 13%. The transfer has reduced MetalNRG's obligations to Global Investment Strategy to GBP58,663 from GBP158,663.
MetalNRG on Friday issued GBP100,000 of zero coupon unsecured convertible loan notes to Eqtec. The convertible loan notes gives Eqtec the right to convert GBP100,000 worth of shares when MetalNRG has available headroom or when a prospectus is issued.
The shares will convert at the prevailing market price or at the price that any funds are raised in connection with the issue of a prospectus.
Eqtec said "the purpose of the convertible loan note is to allow the company to re-establish its equity position in MetalNRG at approximately the same level that existed prior to discharge of its Global Investment Strategy liability as guarantor on behalf of MetalNRG."
MetalNRG Chief Executive Rolf Gerritsen commented, "we are very grateful for Eqtec's ongoing support and continue working with them in a positive manner."
MetalNEG also said that it had received a notice of conversion regarding GBP19,000 of an unsecured loan facility. It said 25,000,000 new shares would be issued at a price of 0.08 per share.
Shares in MetalNRG were trading 7.1% lower at 0.10 each on Friday morning. Eqtec shares were trading 0.5% lower at 0.28 pence each.
By Chris Dorrell; chrisdorrell@alliancenews.com
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