Billingham Project MOU Extension with COBRA and Scott Bros
Exercise of warrants
EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, announces that, further to the Company’s announcements of 8 May 2019 and 23 October 2019, of the signing and extension of a conditional Memorandum of Understanding (“MOU”) with COBRA Instalaciones Y Servicios (“COBRA”), the Company’s strategic partner for the development of waste-to-energy projects, and Scott Bros. Enterprises Limited (“Scott Bros”) (together, with EQTEC, the “Parties”) to jointly develop the proposed up to 25 MW Billingham Energy waste gasification and power plant in Haverton Hill, Billingham, UK (the “Project”), the Parties have agreed to further extend the exclusivity period of the MOU until 22 September 2020.
Subsequent to the previous extension to the MOU (as announced on 23 October 2019), the Company commenced discussions with potential co-developers and funders to the Project, a number of which are progressing well. EQTEC also instructed and paid the grid operator, Northern Powergrid, to provide a full quotation for the grid connection, which has been received by the Company. The Company also initiated technical due diligence with potential funders and insurance providers, which is ongoing.
In addition to the extension to the MOU exclusivity period, Scott Bros has undertaken to enter into a legally binding option agreement, 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. The MOU extension announced herein sets out the intention of executing this option agreement within 45 days and that such option agreement, if and when entered into, will supersede all other agreements between the Parties regarding the potential acquisition of the SPV.
Exercise of warrants
The Company also announces the exercise of certain warrants to subscribe for new ordinary shares in the Company (“New Ordinary Shares”). Warrants over 10,000,000 New Ordinary Shares at a price of 0.25 pence per share have been exercised. The aggregate gross proceeds of this exercise receivable by the Company amounts to £25,000.
Admission and Total Voting Rights
The Company will make an application to the London Stock Exchange plc for the 10,000,000 New Ordinary Shares, to be issued and allotted as a result of the warrant exercises set out above, to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings will commence on or around 26 June 2020. The 10,000,000 New Ordinary Shares will rank pari passu with the existing Ordinary Shares.
Following Admission, there will be 4,239,776,247 Ordinary Shares in issue. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company.
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.
About EQTEC plc
EQTEC is a technology partner with proven proprietary patented technology for waste-to-value applications.
EQTEC designs and supplies advanced gasification solutions that have a higher efficiency product offering and are modular and scalable from 2MW to 30MW. Of particular importance is the versatility of our solutions to process over 50 different types of feedstock, including municipal waste, agricultural waste, biomass and plastics. Our solutions produce a uniquely pure high-quality synthesis gas (syngas), that is capable of being used for the widest applications in energy and biofuels.
Proprietary technology design together with deployment and maintenance capabilities mitigate the risks when using third party equipment. Our Technology Integration capabilities enable us to lead collaborative ecosystems that build sustainable, waste elimination and green energy infrastructure.
The Company is quoted on AIM, bears the Green Economy Mark awarded by the London Stock Exchange and trades as EQT. Further information on the Company can be found at www.eqtec.com .
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