EQTEC PLC has successfully secured a refinancing of its existing secured lending facility, replacing the previous funding with a non-convertible secured term loan facility with no scheduled repayments until 21 May 2026. The outstanding balance on the previous funding as of 21 May 2024 was £4.9 million, including accrued interest. The new funding aims to reduce the Group's short-term liabilities and enable the company to focus on funding immediate and ongoing working capital obligations.
The new non-dilutive funding with the Lenders, effective from 22 May 2024, removes any fixed repayment schedule during the term and ensures that the outstanding debt will only reduce proportionally to future capital inflows prior to the 24-month maturity date. The amended and restated facility agreement includes a 24-month term with a 9.5% fixed coupon of principal outstanding accruing on the commencement of each 12-month period. There are no fixed monthly payments or conversion rights, and outstanding amounts will only be converted into shares in the Company in the case of an event of default.
David Palumbo, CEO of EQTEC, expressed his satisfaction with the new term loan, stating, "The material reduction in anticipated cash payments to the lenders, combined with the anticipated cash inflows from the Logik settlement payment, will provide a good foundation for EQT to move into a growth phase with increasing recurring monthly revenues from operations." The new facility, structured as a 24-month bullet loan, reflects increased confidence from secured lenders in the business model of the Company through the implementation of their "strategic pivot."
This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation. EQTEC plc is a thermochemical conversion technology and engineering company that delivers waste management and new energy solutions through innovation and infrastructure engineering. Their technology is at the center of clean energy projects, sourcing local waste and supporting the transition to localised, decentralised, and resilient energy systems.