EQTEC PLC Amendment to Loan Facility (8698M)
January 11 2019 - 3:05AM
UK Regulatory
TIDMEQT
RNS Number : 8698M
EQTEC PLC
11 January 2019
11 January 2019
EQTEC plc
("EQTEC" or the "Company")
Amendment to Loan Facility
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, is pleased to announce that it has
executed final legal documentation to amend the existing secured
loan facility initially entered into by the Company on 5 July 2018
(the "Loan Facility") with Cuart Investments Fund and associates
(the "Lenders").
EQTEC has a number of significant near term opportunities and
has therefore agreed to amend the Loan Facility in order to allow
the Company to focus its financial resources on delivering projects
within the pipeline in the near future.
On 3 October 2018 the Company and the Lenders agreed to amend
the existing Loan Facility to increase the secure facility to up to
US$10 million (approximately GBP7.6 million). The outstanding
balance, at 5 January 2019, owed under the Loan Facility was
US$3,228,000 of principal, plus accrued and unpaid interest
thereon.
The Company, in order to pursue its opportunities and targets,
has agreed with the Lenders to further amend the terms of the Loan
Facility so that repayment amounts due pursuant to the Loan
Facility after 5 January 2019 will now commence on 5 April 2019. As
part of the amendment to the terms of the Loan Facility, a monthly
fee of US$6,667 will be paid on the 5(th) day of each month
beginning on 5 April 2019 for 15 months.
Payments of capital and interest due and outstanding under the
Loan Facility on 5 January 2019 were US$486,893. As such, the
Company has also agreed with the Lenders to make a minimum cash
payment of US$100,000 of this balance by 31 January 2019 with the
balance of US$386,893 being paid no later than 28 February
2019.
Ian Price, CEO of EQTEC plc, commented: "EQTEC currently finds
itself presented with significant contract opportunities which we
wish to capitalise on. This amendment to the Loan Facility will
allow the Company to pursue our goal of generating revenue both
through the execution of new and existing contracts ranging from
EUR10m to EUR100m.
"The ongoing support of the Lenders along with other key
stakeholders is a testament to their confidence in EQTEC's ability
to execute its growth strategy. We look forward to providing
shareholders with further updates as we seek to strengthen our
position in the market."
Ian Pearson, Chairman of EQTEC plc, commented: "Evidence of
rising demand for our technology and services continues to mount
and we wish to ensure that we are well positioned to take advantage
of this and other contract opportunities. To support these
priorities, we have effected a significant improvement to our
working capital position by amending the terms of the Loan
Facility."
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
EQTEC plc +353 (0)21 2409 056
Ian Price - Chief Executive Officer
Gerry Madden - Finance Director
Northland Capital Partners Limited - Nomad
and Broker +44 (0)20 3861 6625
David Hignell/ Dugald J. Carlean
Luther Pendragon - Financial PR +44 (0)20 7618 9100
Harry Chathli / Alexis Gore / Joe Quinlan
Notes to Editors
About EQTEC plc
EQTEC's business model involves sourcing and providing
assistance in developing waste elimination projects 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. Furthermore, EQTEC
will provide O&M services to the operating projects 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
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END
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