Eqtec Regulatory News (EQT)

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16 October 2017

EQTEC PLC

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

Convertible Loan Agreements

EQTEC PLC (AIM: EQT), the technology solution company for waste gasification to energy projects, announces that the Company has entered into agreements pursuant to which an existing lender (the "Existing Lender") and a new lender (the "New Lender") have agreed to make interest free unsecured loans of an aggregate amount of £225,000 to EQTEC (the "Convertible Loans"). Such loans will convert into new Ordinary Shares on the earlier of the date of Completion (as defined in the announcement of 17 July 2017) and 31 December 2017 (the Longstop Date"). The Company will also grant warrants over Ordinary Shares ("Warrants") to the lenders at the time of conversion of the Convertible Loans.

Convertible Loans

The Company and the Existing Lender, who is an existing shareholder of the Company, are parties to a loan agreement dated 17 July 2017 (the "Original Loan Agreement") pursuant to which the Existing Lender has lent the Company £300,000. The terms of that loan are set out in the Company's announcement of 17 July 2017. The Company and the Existing Lender have agreed to terminate the Original Loan Agreement and have entered into a new agreement pursuant to which the parties have agreed the original £300,000 is treated as having been advanced pursuant to the terms of that agreement and the Existing Lender has agreed to make an additional £200,000 loan to the Company on or before 19 October 2017. The Company has also entered into an agreement with the New Lender, who is not an existing Shareholder of the Company, pursuant to which the New Lender has agreed to make a £25,000 loan to the Company on or before 19 October 2017.

The Convertible Loans are unsecured and non-interest bearing. The Convertible Loans will convert into Conversion Shares on the earlier of the date of Completion and the Longstop Date. The Convertible Loans will automatically convert into the Conversion Shares at 1 pence per share.

On the date of conversion of the Convertible Loans the lenders will also be granted Warrants for such number of new ordinary shares as is equal to the number of Conversion Shares issued. The Warrants will be exercisable for a period of two years from the date of grant. The exercise price of the Warrants will be 2.2 pence per share if the conversion event is Completion or 1.5 pence per share if the Convertible Loans convert on the Longstop Date.

Unless otherwise defined all capitalised terms contained in this announcement shall have the same meaning as in the announcement on 17 July 2017.

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