Eqtec Regulatory News (EQT)

2 December 2019

EQTEC plc

("EQTEC", the "Company" or the "Group")

Equity Subscription of £958,500 at 0.125p per Ordinary Share

EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, today announces that it has raised £958,500 before costs by way of a subscription with new and existing investors of 766,800,000 new ordinary shares of €0.001 each in the Company ("Ordinary Shares") (the "Subscription Shares") at a price of 0.125 pence per Ordinary Share (the "Subscription Price") (the "Subscription").

In addition, subscribers will be issued with one warrant for every two Subscription Shares subscribed for (the "Subscription Warrants"). Each warrant is exercisable at a price of 0.25p (a premium of 100% to the Subscription Price) for a period of 24 months from the date of admission of the Subscription Shares to trading on AIM ("Admission").

Completion of the Subscription and Admission of the Subscription Shares is conditional on receipt of the Subscription proceeds by the Company.

As part of the Subscription, Altair Group Investment Limited ("Altair"), has agreed to subscribe for, in aggregate, 268,000,000 Subscription Shares, representing a cash subscription of £335,000. On Admission, Altair will be interested in, in aggregate, 1,137,432,501 Ordinary Shares representing 28.87 per cent. of the Company's issued share capital as enlarged by the Subscription Shares and the Conversion Shares (as defined below). As announced on 28 June 2019, Altair can only convert its warrants (including those announced herein) and/or convert outstanding principal and interest under its existing debt facility with the Company, if such conversion would not trigger an obligation under Rule 9 of the Irish Takeover Rules to make a general offer for the balance of issued shares in the capital of the Company.

The net proceeds of the Subscription will be used to further the continued development of the Group's near term pipeline and for working capital purposes.

The Company also announces that it will issue, in aggregate, 80,070,440 Ordinary Shares (the "Conversion Shares") to certain strategic service providers (the "Strategic Providers") providing Engineer, Procure and Construct ("EPC"), Business Development and Advisory services to the Group, who have agreed to receive shares in lieu of cash fees. These shares will be issued at an agreed value per share of 0.25p, a premium of 100% to the Subscription Price, thereby reducing the Group's creditors by €232,763.

Each of the Strategic Providers has entered into an agreement with the Company whereby they have agreed not to dispose of any Conversion Shares for a period of six months following Admission.

Related party transaction

Altair is a substantial shareholder of the Company as defined in the AIM Rules for Companies ("AIM Rules"). Accordingly, the participation of Altair in the Subscription constitutes a related party transaction pursuant to Rule 13 of the AIM Rules.

The directors of the Company, having consulted with the Company's nominated adviser, Strand Hanson Limited, consider that the terms of Altair's participation in the Subscription are fair and reasonable insofar as the Company's shareholders are concerned.

David Palumbo, CEO of EQTEC, commented: 

"We are pleased to confirm this equity Subscription, as it will strengthen the Company's balance sheet and provide working capital to progress our near-term projects as we continue to develop, establish and strengthen our strategic partnerships. We are delighted to have Altair as cornerstone investor in the Subscription and furthermore, that approximately 75% of the remaining book was distributed among five strategic investors. In addition, having certain of our key strategic service providers agree to receive payment in shares at a 100% premium to the Subscription price demonstrates, we believe, the confidence of our key suppliers in our longer term business plan."

Admission and total voting rights

Application will be made to the London Stock Exchange plc for Admission of the Subscription Shares and the Conversion Shares. It is expected that Admission will become effective and dealings will commence on or around 11 December 2019.

Following Admission, the Company will have a total of 3,939,376,247 Ordinary Shares in issue carrying voting rights. The Company does not hold any Ordinary Shares in treasury. Therefore, with effect from Admission, this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company, under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

Enquiries

Notes to Editors

About EQTEC plc

EQTEC is the technological solution partner for converting waste to clean energy.

EQTEC mission is to provides sustainable technological solutions to address two of the world's greatest challenges: managing rising levels of waste and meeting the growing demand for clean energy.

EQTEC's business model involves sourcing and providing assistance in developing waste elimination projects which will convert waste into clean energy, to which it will ultimately sell its EQTEC Gasifier Technology ("EGT") and O&M services. EGT enables project developers to construct waste elimination plants and recover electrical and thermal energy from the waste streams.

EQTEC sources projects that have a local supply of waste in need of elimination and conversion. It builds relationships and brings together the developers, the waste owners, the building contractors and funders. It then supplies the energy recovery technology and provides engineering services to the projects.

EQTEC also seeks to provide Operation & Maintenance services to established operating co-generation plants generating recurring revenues over the life of the projects.

The Company is quoted on AIM and trades as EQT. Further information on the Company can be found at www.eqtecplc.com.