EQTEC PLC has successfully raised £0.5 million through a direct subscription of 21,276,596 new ordinary shares at a price of 2.35 pence per share by Verde Corporation. The proceeds will be used for the ongoing working capital requirements of the Group. Verde, a part of the US-based Verde Group, will be interested in 9.67% of the enlarged ordinary share capital of the Company following Admission. Additionally, Verde has committed to a second subscription for new Ordinary Shares of £1 million at 4.75 pence per share, with the condition of completing due diligence and shareholder approval.
Altair Group Investment Limited and Pitcole Limited, significant existing shareholders in the Company, have agreed to convert their respective outstanding loan balances under the £3.0 million syndicated loan facility into equity. A total amount of £406,000 is being converted into 17,276,596 new Ordinary Shares in the Company at the Subscription Price. Altair and Pitcole have signed lock-in agreements with the Company, undertaking not to trade the Conversion Shares until after 30 June 2024.
The Company has introduced a UK Special Situations investor to YA II PN Ltd and Riverfort Global Opportunities PCC Limited, the YA-RF Lenders, to purchase the remaining balance of 10,162,349 Ordinary Shares currently held by them, issued to them pursuant to the debt restructuring transaction announced by the Company on 20 November 2023.
Verde Group's strategy is to acquire equity positions and work closely with the management in businesses with strong synergies to leverage and exploit commercial and operational synergies between the various holdings of the Verde Group. The completion of the Subscription is conditional on the proceeds being received by the Company prior to 19 February 2024 and admission of the Subscription Shares to trading on AIM by 22 February 2024.
The news indicates a strategic investment, debt conversion, and share sale by EQTEC PLC, showcasing the company's efforts to strengthen its financial position and expand its investor base.