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Don't think previous Ceo had much cash to play with either (not defending him) but current management enjoyed the gift of the greentech bubble SP spike the company had in 2021 to 3p (obvs pre consolidation) which allowed DP to raise a lot of cash as he rode the SP back down, just highlights for me the disappointing performance of the leadership here.
Shouldn't look a gift horse in the mouth but it has just prolonged the demise of this company to the benefit no one other than the directors who rewarded themselves handsomely after the big raise. Oh and Altair of course. They have been partly derisked of course. Ahem.
The people behind the "Special Situations Investor" are no other than the same people behind Align Research who have previously provided paid for "research" notes. I believe they have been paid in shares previously so may have secured a deal to buy a tranche of shares from Riverfort and YA at a discount - who knows but unlikely to hang onto them for long.
I had to Google what a Special Situations Investor was - basically someone who sees an opportunity buy low and sell high. No sign of what would drive such confidence in this company which reinforces my suspicion they got a discount and won't be holding for long - assuming they didn't even forward sell shares already. Otherwise they could just buy on the open market given how low the current price is?
Not got to the bottom of who the Verde people are yet so if anyone can share a link to their website it would be interesting to know.
Immediately after the Ordinary Share Consolidation 9 (nine) out of every 10 Ordinary Shares of ?0.01 each will be redesignated into 9 (nine) deferred C ordinary shares of ?0.01 each ("2023 Deferred Shares").
The 2023 Deferred Shares will have no economic value and will carry the rights as set out in the Amended Articles and as summarised below.
The 2023 Deferred Shares created will be effectively valueless as they will not carry any rights to vote or dividend rights. In addition, holders of 2023 Deferred Shares will not be entitled to a payment on a return of capital or on a winding up of the Company. The 2023 Deferred Shares will not be traded on AIM or listed and will not be transferable other than as specified in the Amended Articles.
My takeaway is we effectively lose 90% of our shareholding and value (try not to laugh or cry) unless the consolidation results in a tenfold increase in the share price?
Is this correct?
Hmm. A couple of points:
1. This salary share payment scheme is not specific in terms of if they are all receiving 24% less cash each month... from now. That is the important bit...
2. The opportunity for retail shareholders to continue to buy at the placing price has not resulted in the full allocation being taken up. Wonder why condiering the SP is below the placing price? Also no news on whether the placing has has raised the cash expected from the non existing retail shareholders- when is the RNS coming on that I wonder? Will go some way to show how confident the market is in the company...
That's not the whole story from what I have gleaned. The client needed a plant delivering for a certain price for Eqtec to get the order so they cut corners on the design. So they put themselves in a very difficult position to start and delivered equipment even the best EPC was going to find difficult to integrate. When the sh*t hit the fan Eqtec had no money to fix the problems.
Fast forward several years and new investor cash has been used to resurrect the failed plants as MDCs.
You have to remember that Eqtec doesn't provide a complete technical solution for its product. It delivers the black box core technology and ancillaries but still relies on other contractors to provide the 'balance of plant' and civil works. Investors then need to assess the technology commercial track record which is limited except for Movialsa which is neither owned or operated by the company. These all result in challenges for financing. It's hard enough to reach close on projects even with mature technology so it makes it that much harder with Eqtec's back story and current commercial track record.
I've not posted on here in an age but have sat quietly watching the BOD make grand predictions which have not in any way materialized. My frustration has finally boiled over.
There needs to be a plan to cut costs. Eqtec's headcount has grown massively in the last 12 months but this has not translated into sales. You can only burn through investor and lender cash for so long before everyone loses faith. It doesn't matter who is leading the business if results don't arrive. AIM is always looking for the next "messiah" CEO but most often they get crucified when they don't produce the promised results.
The cash burn is horrendous for a business that doesn't have an established order book.
What's the plan because the placing RNS is just funding for more jam tomorrow ??
EQTEC plc (AIM: EQT), a world-leading technology innovation company enabling the Net Zero Future through advanced solutions for hydrogen, biofuels, SNG and other energy production.
On what evidence is the above statement made?? This has been the intro to RNSs for a while now but I'd love to know how the Nomad thought this was in any way credible?
Opinion - shareholders shafted.
Forget the economic headwinds. Fundamentally this company sells capital equipment in a market where it cannot bring its product to market without both a main construction contractor and external funders (let alone fuel feedstock and energy offtake or product markets). Eqtec has zero control over any of this despite trying to plug itself into the so called "ecosystem". DP et al have burned through 10s of millions of investor cash with ZERO new projects to show... the MDCs are clearly earlier failed plants being resurrected but NO explanation of what the reasons for their earlier failures might be.
Sh*t show par excellence!
I think the decision on boiler vs gas engine is down to confidence in generating the right syngas quality from the different fuels. Boilers are more flexible than gas engines and RDF is a mixed fuel so the syngas quality may vary more when compared to what you might get from clean biomass.
Looks like Stelios has hooked up with a pyrolysis tech company:
https://easypower.global/
Apologies Bananaman. You're right... my misread of the RNS. CTO must have sold the IP in exchange for the royalties.
Try reading the RNS before you slip on your banana. It clearly says the tech is owned by the CTO through his company Syngas Technologies... it doesn't matter what name the patents are filed in. Instead of telling me to go to sleep you need to wake up.
Maybe I've been asleep but who else wasn't aware that we don't even own the IP to the gasification technology??
Companies normally only pay dividends out of profits so I wouldn't expect Plc shareholder dividends for a few years. Eqtec's quity ownership position in project SPVs is where the company is likely to accrue dividends although cash only tends to flow (from profits again) once any debt has been paid off... so again may take some time.
Puzzled. Unless I'm missing something the notes to the financial statements in the annual report are incomplete. The annotations against the financials refer to note numbers going up into the high 20s but the actual notes shown only go up to 12. And notes 13 and 27 are supposed to detail the employee share based compensation.... as an example of interest. Has anyone else noticed this?
It seems there were problems which were never identified publicly - maybe pre the merger/RTO. Whether it was an Eqtec issue or an owner issue nobody knows or is willing to say. However, if there's not much work to get them operational, they could be quick wins to start generating revenue/profit. Overall I see it as a positive.
Well that answers one thing that has been bugging me - why there was no operational data about the other plants Eqtec built. The owners couldn't operate them which is why Eqtec is looking to buy them. If they're already built it may mean not much work to get them going - just needs the funds to buy and make repairs. More revenues in 2021?
I see this statement in the RNS from this morning:
To date, four commercial plants have been built and are using EQTEC's advanced gasification technology, which is proven and patented for sustainable waste-to-energy projects. The oldest such plant, built in 2011, has operated for over 125,000 independently audited engine hours, receiving highly commendable feedback from leading gas engine company Jenbacher relating to purity of the syngas, reliability and efficiency.
I've asked before but not been able to find out how many years or hours our other plants have been operating. Does anyone know?
Eqtec mentioned here.
https://www.investmentweek.co.uk/analysis/4026453/flotation-celebration-aim-boom-offers-investors-access-exciting-growth-companies