EQTEC PLC has provided an update on the bank refinance for its Italy Market Development Centre (the "Plant") and the receipt of two shareholder conversion notices. The company had entered into a loan facility of €2.9 million with Banca del Fucino S.p.A. to refinance the Plant. EQTEC has successfully completed all performance improvements and achievement of performance criteria set by the lender. The lender will visit the Plant in early January 2024, after which the company expects to be able to draw down the full facility amount. The Plant became operational in March 2023 and EQTEC completed handover protocols and transfer of plant operations to EQTEC Italia MDC Srl in June 2023. The company remains actively involved in supporting Italia MDC in its operations.
The company has received two conversion notices from Altair Group Investment Limited and Pitcole Limited pursuant to the financial restructuring announced on 20 November 2023. In light of the company's capital reorganisation and share consolidation, the conversion shares will be issued in the form of consolidated shares. Pitcole has elected to convert a remaining balance of £400,000 into 13,986,014 new consolidated shares, while Altair has elected to convert a remaining balance of £562,500 into 19,667,832 new consolidated shares. Upon conversion of the remaining balance under the Altair Settlement Agreement, the company will be released from all liabilities and obligations pursuant to the debt facility with Altair. The new shares will be admitted to trading on AIM on or around 29 December 2023.
EQTEC Italia MDC is a company registered in Italy that transforms agricultural and forestry waste into electrical power and biochar. The company currently owns 49.0% of Italia MDC, with an option to acquire further equity in the future. Italia MDC owns and operates a 1 MWe plant in Gallina, Tuscany, which is capable of converting multiple types of biomass feedstock into electrical power and thermal energy.