Member Info for Computer909

@Aandi: "Can you tell us how much revenue......."

I don't think anyone can quantify how much any of the projects had added to the bottom line, The EQT business model is so complicated they need a Phd in theoretical maths to determine that figure on its own, perhaps thats what one of the new Phd employees has been brought into do.

@Aandi: "Can you tell us how much revenue the 3MW biomass plant that reached financial close in Croatia is worth to Eqtec?

What about the 3MW Wesleyville plant in the USA with government loans approved, when are the loans being issued and what is the capex of that plant?

What about contaminated plastics plants in France? How many are in the pipeline, what size are they and how large is the capex, and what revenue will eqtec receive? Can you answer these questions?"

We don't have the figures for this yet, but we do now it hasn't covered the outgoings of the company during the period or we wouldn't have needed to take a CLN for "general working capital"

"will also have options to sell on projects when the price is right."

I think thats the crux of the conversation, if in the current climate there are buyers for the projects at the right price, is that the fundamental issue with the EQT business model, you can have the most wondrous product but if no one has the cash to buy it, you have to keep hold of it, at a cost we cant afford either at present

"2021 revenue was up 400%"

But it took a cash injection of circa £16M from investors to drive that increase, and post period we are potentially in the hole for another £10M

All while the share price has dropped by 75% in the same period

https://eqtec.com/investing-in-eqtec/

Our revenues come through a combination of recurring and one-off earnings from the following:

i)Technology sales & services, including specification, manufacture and delivery on site of EQTEC-designed equipment and essential ancillary equipment, onsite construction advisory and further engineering as required, technology integration support with non-EQTEC technology and commissioning of EQTEC-enabled plants

i) Development services, including land acquisition, planning & permitting and engineering & design to EPC selection, funding and legal execution of contracts

iii) Other revenues, include plant operations from part-owned or wholly-owned Market Development Centres, from consultancy or from provision of other non-core services

Is it the case that the company has concentrated too greatly on "Development Services" in the hope if driving "Technology sales & services", but with the current climate is in danger of over-reaching and being left holder a number of very expensive "babies", and expecting the shareholders to shoulder the burden.

The company are very keen to point out they are a technology company, not a plant operator, but at the moment it looks a considerable amount of the companies cash is in owner/operator basket compared to the technology basket.

EQTEC twitter account is active on a daily basis, I good thing we hope, but the share price looks nailed at 0.8, probably due to Amati continuing to reduce its holding, Lets hope the upcoming trading update has some thing to break the spiral, and that Amati aren't aware of something the rest of us are not.

It's still unbelievable that with everything going on in the world, Global warming, Global Energy crisis EQT still seem unable to get sufficient "Big Wallet" backing in order to get any of their projects over the line.

With the likes of Wood group short of investment cash, and a possible global recession in the offing, does the EQT business model look to be the wrong one for the times we are in? Or will it all come good in the end ?

"but it's looking a bit bleak at the moment"

In the short term it really does look like we are at the mercy of what Amati decide to do with their remaining 5% (or around 400M shares), doesn't look like they have finished yet though unfortunately.

The latest dog of a CLN financing agreement does seem to have taken the shine off EQT at least in the short term

Always was a long term hold, but no one likes to see their investment slide on a daily basis when the outlook is supposed to be pretty rosy, let's hope the company has some good news for us by the end of the month.

Its really now a case of if you liked EQT at 2p you have to love it at 0.8p !

"Not great is it? Let’s be fair. If we had an II growing it’s holding we would taking a big positive out of it. Given that it is only fair to be mildly concerned at the reduction."

Amati are probably as uncomfortable as the rest of us with the CLN financing the company took out and its impact on the share price, I hope the EQT board take note as the the market & shareholder response. Definite home goal on EQT's part.

"expecting DP to come out guns-a-blazing for next 9 months as first quarter has been a little lacking on where we might have hoped"

He's going to have to step up to the plate more than he has delivered in the last 12 months, We have had delay after delay, a £15M placing, a £10M CLN issue and a share price 50% of what it was 12month ago and in a concerning drift, now the second biggest shareholder looks like they are offloading, Isn't really a great look at the moment.

He needs to realise that only so long will investors accept that good things are happening with the company when they don't see any improvement in the bottom line, and cash seem to be flooding out of the door with relatively little returning

"Results and update tomorrow"

Will definitely be interesting to see where all the cash has gone, not sure its going to be the pleasant read we were expecting at the beginning of the year though, There was so much promised in May 2021 with 1.5p placing but with the bid now at 0.75 thats a whole 50% down on that figure.

Let's see what the CEO & Chairman have to say about their performance in the last 12months and how we are fixed for the next, I'm sure it will mention working hard to increase shareholder value but we now need to see them "walk the walk" not just "Talk the Talk"

Bit frustrating the share price cant hold any any water above 5p at present. Interesting also that the CEO has no declared equity state, and isn't even a company director (so not really worried about the shareprice)

https://find-and-update.company-information.service.gov.uk/company/10966847/filing-history

Looks like the usual leaky ship that is AEG, and bad news incoming !

The company or at least @flowcomms made a number of schoolboy errors with the JORC update announcement, announcing the investor presentation would discuss the jorc update before the Jorc was announced basically opened the share to day trading who basically knew they were going to get a spike monday morning, looks like they are all taking their 10% and moving on now.

Momentum destroyed here by the last two RNS, hopefully some reasonable news with the Trading update and investor presentation due at the end of the month.

"I'm pointing out the cheap placing at 5p"

5p is basically on or above the daily mid-market price for the 7 of the last 14 days, I don't think anyone can call that "cheap"

"12pm webinar today, so can someone ask CEO to cancel this cheap 5p Placing"

Do you guys actually understand what you are invested in?, The increased backing of RAB is a major step forward for an early stage mining company, these guys are switched on and wont be flipping their investment to make a quick 10%, they will be looking for multiples in the coming years. They also bring a wider stamp of respectability to a company who will need further investment down the line in order to get production started.

If you don't understand how these companies get funding in order to move forward, perhaps you need to look elsewhere with your investment, as this wont be the last placing in the coming years, the key is that the investment adds value and moves the company to the next stage.

@Aandi: Have the research note now, thank you

The complexity of the EQT commercial model I think is a contributing factor to the markets current response, hopefully that will change when they actually get the cash flowing in rather than out

@Aandi: “Were the sale value to be below £15m, EQTEC would charge its entire development services fee at financial close."

Where is this stated, all we have in the RNS is that the invoice amount will be reduced, pound for pound in the amount below £17m, there is no mention of deferring until financial close?

@Aandi: “ Eqtec will invoice the SPV for £2m development service fees. They haven't spent £2m, they will receive £2m back”

Surely the development services the company have supplied, have come at a cost to the company, at the most basic level the salaries of the EQT staff that have worked on the development for example, so if the development services invoice is reduced pound for pound , then the invoice could be reduced to zero when the SPV is sold for £15m?

I seem to have missed the described process that you mention where EQT will recover its development services cost if the SPV is sold for £15m, where has the company stated this, from what I can see the recovery of that expenditure is at risk if the price achieved isn’t £17m+

"Below is from RNS 1 April. Now of course, it could be a'joke'"

If you look in detail at the RNS it does again throw up some questions as to EQT commercial decision making

So as we stand we have ploughed £2.3M as an equity purchase and £2M of development services costs into this project, for a 32% equity share of the SPV. (so a total investment of £4.3M on EQT's part)

Ideally we sell the project for £17M+ and we get back our £2M development services and then 32% of the remaining £15M
£2M + £4.8M = £6.8M return on the £4.3M invested

But ...

We have agreed to reduce our development services invoice pound for pound if the sale is below £17M, (and they have basically broadcasted that there minimum acceptable value figure is £15M so who on earth is going to offer more than that, and 68% of the SPV shareholders (Logik) have no interest in pushing for any figure beyond £15M unless it is beyond £17M

So if the project gets sold for £15M we will get our £4.8M (32% share but wont recover a penny in development costs) so for our £4.3M investment we only make £0.5M on the deal.

Who on earth thought that was a good deal ? The new CFO ?