Last RNS25 May 2018 11:30
23 May 2018
EQTEC plc
('EQTEC' or the 'Company')
Partial redemption of Unsecured Convertible Loan
EQTEC PLC (AIM: EQT), the technology solution company for waste gasification to energy projects, announces that it is making a partial redemption of the Unsecured Convertible Loan Note ('UCLN') facility signed on 28 February 2018.
As stated in the announcement of 27 March 2018, the Company had ceased discussions with the investor of the UCLN (the 'Investor') and their advisers for the redemption of existing amounts outstanding. The Company is pleased to announce that, following a resumption of discussions recently, it has now agreed with the Investor a partial redemption of the UCLN amounting to �157,500 to be paid immediately. This amount will be the initial payment ahead of the full redemption of the remainder of outstanding Unsecured Convertible Loan Notes. Additionally, the Investor has also agreed, on full redemption of the remaining UCLN, to give up any future or past equity rights in the Company in the form of warrants that were attached to the original UCLN.
The balance of the UCLN will be redeemed once final negotiations are completed between the Company and a new debt provider and a drawdown is made on the new facility. The facility under negotiation is a straight debt only facility which is expected to be drawn down in two tranches. The facility has been structured as straight debt to eliminate any dilutive effect for shareholders at the current share price.
The Company is also in discussion with its major shareholder EBIOSS Energy SE regarding further investment in the Company to execute the expansion of its business plan.