EQTEC PLC Altair Loan Facility - Update (7594N)
22 January 2019 - 8:53PM
UK Regulatory
TIDMEQT
RNS Number : 7594N
EQTEC PLC
22 January 2019
22 January 2019
EQTEC plc
("EQTEC" or the "Company")
Altair Loan Facility - Update
EQTEC plc (AIM: EQT), the technology solution company for waste
gasification to energy projects, is pleased to announce that it has
entered into an agreement with Altair Group Investment Limited
("Altair") to increase the loan facility available for drawdown by
GBP0.879 million to GBP3.5 million. Altair will also consolidate
two loans between Altair and EQTEC, for which Altair has the
ultimate benefit, into one facility. This increases the amount of
loan facility available, consolidates and simplifies the Company's
funding arrangements, and represents Altair's continued support for
the Company.
Ian Price, CEO of EQTEC plc, commented:
"As demonstrated by the recently announced equipment purchase
contract with Phoenix Energy, the Company is focusing its efforts
on executing projects in its pipeline with blue chip clients. We
believe we now have greater control on the key workstreams required
for a successful sales execution. EQTEC currently finds itself
presented with significant near-term contract opportunities ranging
from EUR10-EUR100 million, which we wish to capitalise on in the
near future.
"Increasing the available Altair facility by GBP0.879 million is
significant for EQTEC as part of its previously announced growth
optimisation plan as it ensures that the Company is in a sound
financial position to capitalise on delivering projects within its
pipeline in the near term.
"Altair's team has been working with EQTEC since 2014 and they
are encouraged by the Company's potential. We are grateful for
their continued and long-standing support.
"EQTEC is looking forward to providing shareholders with further
updates on contracts and projects as appropriate."
Background
On 14 July 2015, the Company issued GBP2 million of secured
convertible loan notes ("CLN") to Altair and entered into a secured
five year term loan agreement with Ecofinance GLI Limited
("Ecofinance") for GBP1 million (the "Ecofinance Loan"). On 19
January 2018, the Company announced that it had made an early
repayment of GBP378,882 along with GBP2,958 of accrued interest on
the Ecofinance Loan, leaving a remaining balance of GBP621,118
which is repayable in 2020. As a result of the early repayment to
third party shareholders in Ecofinance, Altair has the sole benefit
of the Ecofinance Loan.
Modification of Loan Facility
Altair and the Company have now agreed that the Ecofinance Loan
and the CLN are to be streamlined into one new loan facility
agreement (the "Combined Secured Loan Facility" or "CSLF") with the
Company.
The terms of the existing agreements will be incorporated into
the CSLF with the following amendments:
-- Increase of GBP0.879 million from GBP2.621 million to GBP3.5
million in the loan facility to be available for drawn down at the
Company's request for a period of 12 months;
-- The interest rate on the CSLF facility has been reduced from 15% to 10% per annum; and
-- The maturity date of the CSLF has been extended from 14 July 2020 to 20 December 2020.
The CLSF is to be secured by way of the existing debentures and
guarantees granted to Ecofinance in 2015.
Cuart Loan Facility
On 5 July 2018, the Company entered into a loan facility (the
"Loan Facility") with Cuart Investments Fund and associates (the
"Lenders"). On 3 October 2018, the Company and the Lenders
increased the Loan Facility to up to US$10 million (approximately
GBP7.6 million). On 11 January 2019, the Company announced that, in
order to pursue its near-term opportunities and targets, it had
reached agreement 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.
The Company has to date agreed two advance drawdown schedules
with the Lenders. Further advances will be made by agreement
between the Lenders and the Company in accordance with the terms of
the Loan Facility.
The amount of capital and interest currently outstanding under
the Cuart Loan Facility is US$3,267,311. The amount of capital and
interest currently outstanding under the CSLF is GBP2,621,118.
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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