EQTEC PLC Business and Financing Update (9979I)
March 27 2018 - 1:01AM
UK Regulatory
TIDMEQT
RNS Number : 9979I
EQTEC PLC
27 March 2018
27 March 2018
EQTEC plc
("EQTEC" or the "Company")
Business and Financing Update
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, provides an update on its business
and on the GBP7.5m Unsecured Convertible Loan Note facility signed
on 28 February 2018.
Since the beginning of the year, the Company has added two
significant new potential projects to its pipeline. The Company has
also signed two important partnership deals with major EPC
contractors, COBRA and Rafako, to add to its existing partnership
with Energy China. It is in the process of responding to requests
for quotations on a range of near term projects both in the UK and
overseas markets. In addition, the Company is looking at the
opportunity of becoming an owner operator of smaller energy
gasification sites.
The Board is encouraged by this progress and is actively
exploring opportunities for further funding to replace the funds
that would have been available from the Loan Note facility. This
funding will be used to expand the engineering and commercial team
in support of EQTEC's EPC partners, provide adequate working
capital in all foreseeable circumstances, and enable future
investments.
The Board believes EQTEC can become a leading gasification
technology and services provider and is committed to further
strengthening and expanding the Company's engineering capability to
successfully deliver projects for its customers.
The 16 March decision not to draw down further on the Loan Note
was taken by the Company in light of the negative market sentiment
and share price reaction that followed the convertible loan note
issue. It also received clear indications from the loan note
investor of an unwillingness to proceed with further tranches under
the circumstances. Discussions with the investor and their advisers
for the redemption of existing amounts outstanding have ceased for
the moment.
The Board of Directors has reviewed and reassessed the most
up-to-date management plan, including the likely timing of revenues
from projects, which may vary, and made necessary adjustments on
the timing and amounts recoverable from historical trade
receivables and other material cash flow matters, in order to
support the growth of the business. In particular, the Board notes
that the disposal of the Pluckanes wind turbine, which was at the
final stages, has not completed and the Company is now in
discussion with alternative potential acquirers.
Further announcements will be made as appropriate.
Enquiries
+353 (0)21 2409
EQTEC plc 056
Luis Sanchez - Chief Executive Officer
Gerry Madden - Finance Director
Northland Capital Partners Limited +44 (0)20 3861
- Nomad and Joint Broker 6625
Tom Price / Dugald J. Carlean
+44 (0)20 3700
SVS Securities Plc - Joint Broker 0093
Tom Curran / Ben Tadd
VSA Capital Limited - Financial +44 (0)20 3005
Adviser and Joint Broker 5000
Andrew Monk / Andrew Raca
+44 (0)20 7618
Luther Pendragon - Financial PR 9100
Harry Chathli / Alexis Gore / Ana
Ribeiro
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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