Eqtec Regulatory News (EQT)

30 July 2018

EQTEC plc

("EQTEC" or the "Company")

Standstill Agreement on Loan Conditions and Conversions

EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, announced on 5 July 2018 that it had entered into arrangements with Cuart Investments Fund and associates (the "Lenders") in respect of the provision of new loan facilities for up to US$3.2 million (approximately £2.4 million), an equity investment of £1.15 million and the capitalisation of interest payments due to existing lenders.

Origen Capital LLP ("Origen") invested £1.15 million in consideration for the issue of 191,666,667 new ordinary shares of €0.001 each in the Company ("Ordinary Shares") at a price of 0.6 pence per share (the "Issue Price"). Altair Group Investments Limited ("Altair") and Ecofinance (GLI) Limited ("Ecofinance") capitalised interest payments of an aggregate of £693,168 pursuant to existing debt facilities by the issue of an aggregate of 115,528,000 Ordinary Shares at the Issue Price (Origen, Altair and Ecofinance together the "Subscribers").

The equity subscription and capitalisation of interest payments was structured on the basis that unsecured loans were advanced to the Company which automatically convert into Ordinary Shares at 0.6 pence per share on the earlier of (i) 31 July 2018, (ii) the date of completion of the Acquisition and (iii) the date on which the Company's majority shareholder, EBIOSS Energy SE ("EBIOSS"), completes a further equity investment in the Company (the "Conversion Date"). The subscription and capitalisation of interest payments were structured in this way in order to facilitate ongoing conversations with the Company's majority shareholder EBIOSS regarding further investment.

Under the terms of the loan facility the Company was required to satisfy certain conditions subsequent within 21 days following the date of advance of the initial instalment of the Loan Facility being 30 July 2018. These conditions relate to the implementation of changes to the composition of the Board of Directors of the Company and the formulation and approval of a growth optimisation plan.

The Company has agreed with the Lenders and the Subscribers to a standstill on the satisfaction of the conditions subsequent and the conversion of the unsecured loans until Friday 3 August 2018.

The standstill has been arranged to facilitate further discussions with EBIOSS following its recent announcement on 24 July 2018 of the signing of an agreement between EBIOSS, its main Bondholders and Black Toro Capital ("BTC") which includes BTC providing additional funding to EBIOSS.

Enquiries

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. With the publication of this announcement, this information is now considered to be in the public domain.