Eqtec extends memorandum for development of Billingham project

(Sharecast News) - Waste gas-to-energy technology company Eqtec announced the signing and extension of a conditional memorandum of understanding with Cobra Instalaciones Y Servicios - its strategic partner for the development of waste-to-energy projects - and Scott Bros Enterprises, to jointly develop the proposed up-to-25 MW Billingham Energy waste gasification and power plant in Haverton Hill, Billingham, on Tuesday.
The AIM-traded firm said the parties agreed to further extend the exclusivity period of the memorandum to 22 September.

It explained that, subsequent to the previous extension to the memorandum on 23 October, it began discussions with potential co-developers and funders to the project - a number of which were said to be progressing well.

Eqtec said it also instructed and paid the grid operator, Northern Powergrid, to provide a full quotation for the grid connection, which had been received.

The firm also initiated technical due diligence with potential funders and insurance providers, which was also ongoing.

"In addition to the extension to the memorandum of understanding exclusivity period, Scott Bros has undertaken to enter into a legally binding option agreement, which, if agreed, will grant Eqtec and its partners the right, but not the obligation, to purchase the entire issued share capital of Billingham EFW, the project's special purpose vehicle, from Scott Bros, subject to agreement on consideration and other terms," the board explained in its statement.

"The memorandum of understanding extension announced herein sets out the intention of executing this option agreement within 45 days, and that such option agreement, if and when entered into, will supersede all other agreements between the parties regarding the potential acquisition of the special purpose vehicle."

The company also announced the exercise of certain warrants to subscribe for new ordinary shares in the company on Tuesday.

It said warrants over 10,000,000 new shares at a price of 0.25p each had been exercised, with the aggregate gross proceeds of the exercise receivable totalling £25,000.

At 1525 BST, shares in Eqtec were up 6.93% at 0.73p.