EQTEC PLC Standstill Agreement on Loan Conditions (2100W)
July 30 2018 - 11:02AM
UK Regulatory
TIDMEQT
RNS Number : 2100W
EQTEC PLC
30 July 2018
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 GBP2.4 million),
an equity investment of GBP1.15 million and the capitalisation of
interest payments due to existing lenders.
Origen Capital LLP ("Origen") invested GBP1.15 million in
consideration for the issue of 191,666,667 new ordinary shares of
EUR0.001 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 GBP693,168
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
+353 (0)21 2409
EQTEC plc 056
Luis Sanchez - Chief Executive Officer
Gerry Madden - Finance Director
Northland Capital Partners Limited - Nomad +44 (0)20 3861
and Joint Broker 6625
Tom Price / Dugald J. Carlean
+44 (0)20 3005
VSA Capital Limited - Joint Broker 5000
Andrew Monk / Andrew Raca
+44 (0)20 7618
Luther Pendragon - Financial PR 9100
Harry Chathli / Alexis Gore / Ana Ribeiro
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCWGUUUMUPRGAU
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