Waste gasification and power plant at Billingham, UK:
MOU Extension to facilitate legal execution of Call Option Exclusivity Agreement.
EQTEC plc (AIM: EQT), a world-leading gasification technology solutions company for waste-to-energy projects, is pleased to announce that the Parties have agreed to extend the exclusivity period of the Billingham MOU until 18 December 2020.
On 8 May 2019, the Company entered into a conditional Memorandum of Understanding (the “Billingham MOU”) with Scott Bros. Enterprises Limited (“Scott Bros”) (together, with EQTEC, the “Parties”) to jointly develop the proposed up to 25 MWe Billingham Energy waste gasification and power plant in Haverton Hill, Billingham, UK (the “Project”). The Billingham MOU has been the subject of previous extensions, as announced by the Company on 23 October 2019, 23 June 2020 and 18 September 2020.
Subsequent to the extension announced in September 2020, the Parties acknowledge that the legal execution of the Option Agreement (the “Agreement”) is at an advanced stage, with the majority of the commercial material terms agreed. The Parties agree to use all reasonable endeavours to finalise legal execution of the Agreement no later than 18 December 2020.
The Company has progressed the proposed development of the Project, including inter alia: discussions with potential co-developers and funders; instructed and received a full quotation for the grid connection from the grid operator, Nothern Powergrid; and completed technical due diligence with insurance providers.
The extension of the exclusivity period announced herein is with the aim of finalising the execution of a legally binding option agreement with Scott Bros which, if agreed, will grant EQTEC and its partners the right, but not the obligation, to purchase the entire issued share capital of Billingham EFW Limited, the Project SPV, from Scott Bros, subject to agreement on consideration and other terms.
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.
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