(Sharecast News) - Energy technology developer Eqtec has entered into a loan facility with its largest shareholder Altair Group, it announced on Friday.
The AIM-traded firm said the facility would provide it with an up-to-£2m unsecured loan with a term of 24 months from execution.
It said it carried an annual interest rate of 8.0% on funds drawn and outstanding, with interest payable quarterly in advance.
Additionally, the company would pay a 2.5% arrangement fee.
The board said the facility provided that the company could, at its own decision, make payment against part or all of the loan in new shares, calculated by reference to the volume-weighted average share price over the five trading days immediately before payment.
Additionally, the firm said it would issue 666,666,666 warrants with a strike price of 0.45p each to Altair Group, being a premium of 55% to the closing share price of 0.29p on 8 December, valid for two years.
Proceeds would support general working capital, acceleration of project sales, and technology deployment, in particular for the company's market development centres.
"We are grateful to Altair for their unwavering support of Eqtec and their continued support of our business strategy," said chief executive officer David Palumbo.
"We remain committed to execution of our strategy, driving market development centres and key projects to close, deploying Eqtec technology to more places, more often and growing the business to its full potential."
At 1337 GMT, shares in Eqtec were down 3.1% at 0.28p.
Reporting by Josh White for Sharecast.com.
Eqtec (EQT)