We are pleased to announce that Fortified Securities, acting as co-broker alongside Shard Capital, has successfully led the fundraise for EQTEC plc (AIM: EQT), securing £1.1 million in gross proceeds. This fundraise will support EQTEC’s continued growth in decarbonised energy solutions through its waste-to-value technology.
Key Highlights:
Placing and Subscription: £1.1 million raised before expenses, including a £1 million placing and a £100,000 direct subscription. Investors subscribed to 110,000,000 new ordinary shares at 1 pence per share (representing a c.20% discount to the market price prior to closing of the placing).
WRAP Retail Offer: A separate retail offer via the Winterflood Retail Access Platform (WRAP) is targeted to raise up to £200,000, providing existing shareholders with the opportunity to participate alongside the placing investors at the same placing price.
Debt Conversion & Repayment: Significant shareholders have agreed to convert debt into equity (with a lock-up until 28 February 2025), alongside the repayment of debt, strengthening EQTEC's financial position.
This fundraise marks a significant step in EQTEC’s strategic transition from project ownership to becoming a pure-play technology licensor. Alongside the successful completion of the Logik settlement and the receipt of £2m, the proceeds of the fundraise supplement the existing cash resources of EQTEC and will be used for general working capital and to accelerate the execution of its growth strategy.
David Palumbo, CEO of EQTEC, commented:
"This Fundraise, alongside the earlier announced receipt of the settlement payment from LOGIK, provides the Company with a clear funding runway to fully focus our efforts on reaching profitability and our strategic growth following the implementation of our strategy to become a pure play technology licensor. Last year we transitioned our business away from risk and cost toward greater predictability and sustainability. We move away from project ownership and development, toward provision of our unique technology and engineering capabilities to projects owned and managed by others. We believe EQTEC now presents significant value, having emerged from the challenging transition period where we have not only implemented a much more resilient business model, but also achieved significant strategic progress whilst creating new exciting businesses opportunities such as integrated modular technology to produce synthetic renewable fuels from waste"
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