Altair Loan Facility - Update

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 £0.879 million to £3.5 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 €10-€100 million, which we wish to capitalise on in the near future.

"Increasing the available Altair facility by £0.879 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 £2 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 £1 million (the "Ecofinance Loan"). On 19 January 2018, the Company announced that it had made an early repayment of £378,882 along with £2,958 of accrued interest on the Ecofinance Loan, leaving a remaining balance of £621,118 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 £0.879 million from £2.621 million to £3.5 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 £7.6 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 £2,621,118.

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	[phone]
Ian Price - Chief Executive Officer Gerry Madden - Finance Director
Northland Capital Partners Limited - Nomad and Broker	[phone]
David Hignell / Dugald J. Carlean
Luther Pendragon - Financial PR	[phone]
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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