EQTEC PLC (AIM: EQT) has unveiled a wide-ranging corporate restructuring designed to stabilise its balance sheet, remove near-term refinancing risk and introduce new value catalysts, warning that failure to secure shareholder approval could result in formal insolvency proceedings.
The proposals include a conditional £1.3 million equity fundraise, a major debt restructuring totalling approximately £5.79 million, and the acquisition of the Green Rock copper–gold project in Western Australia for US$150,135. EQTEC has also secured an option over the Peak Hill gold-copper exploration portfolio.
The company has conditionally raised £1.3 million before expenses through a placing at 0.035 pence per share. Completion of the placing is subject to the debt conversion under the restructuring and shareholder approval of all resolutions at an extraordinary general meeting scheduled for 12 February 2026.
The placing price represents a 41.7% discount to the closing price on 31 December 2025 and a 61% discount to the closing price on 28 January 2026. A total of 3,714,285,714 new ordinary shares will be issued, representing around 36% of the enlarged share capital following completion of the proposals.
As part of the restructuring, EQTEC also plans to settle creditor balances through the issue of approximately 535,520,000 new ordinary shares. The board said the combined measures are intended to materially reduce debt, strengthen the balance sheet and reposition the company with exposure to copper and gold exploration assets.
EQTEC cautioned that if shareholders do not approve the resolutions at the EGM, the company may be forced to pursue formal insolvency proceedings, underlining the critical nature of the vote for its future viability.
James Parsons, CEO of EQTEC, commented:
“Copper and gold prices have recently reached record or near-record levels, reflecting exceptionally strong market conditions, which I expect to continue.
Today’s transactions mark the beginning of a new phase for EQTEC. They broaden the Group’s portfolio, introduce near-term catalysts from the newly acquired assets which complement the longer-term value development of the Group’s existing gasification activities. In parallel, these transactions materially de-leverage the balance sheet and establish a strong platform from which to build a company of scale.
The Company will, after the upcoming EGM, host an investor event to provide further detail on the transactions, outline the strategic rationale, and discuss the next phase of the Group’s development.”
