ES20 Mar 2018 12:30
Here's an interesting update on EQTEC (EQT), the firm which last week decided not to proceed with any further draw down amounts on its convertible loan note facility of up to �7.5 million.
This caused quite a stir in the market, mostly because the firm did not say why.
A little bit of digging has revealed that the loan notes would have been issued to a single investor, Bercheva Opportunities Limited.
Latest accounts for Bercheva lodged at Companies House reveal that the company is currently dormant and is based in a innocuous street called Glenthorne Road in Barnet.
The person who owns over 75% of the company is called George James Sandhu.
Sandhu is an interesting character, having been in trouble with the US Securities and Exchange Comission back in 2007.
He defrauded investors by writing two letters to a company called Universal Express.
The company, in turn, used the false letters as a basis to issue materially false or misleading press releases which resulted in increases in Universal Express� share price and trading volume.
Sandhu accepted the Commission's findings and settled.
A spokesperson for EQTEC said: �The recent �1.5 million investor in the Convertible Loan Note is a family office introduced to the company through a UK FCA registered intermediary and who were represented by a highly reputable international law firm. We can confirm that Mr Sandhu is not the ultimate investor.�
More on this story later.