Italy MDC - Refinance Update & Conversion Notices

EQTEC plc (AIM: EQT), a global technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels, and energy generation, is pleased to provide an update on bank refinance for its Italy Market Development Centre (the "Plant") and to confirm that it has received two shareholder conversion notices pursuant to the financial restructuring announced by the Company on 20 November 2023.

Refinance for Italy Market Development Centre

This update follows the Company's announcement on 4 September 2023 that it had entered into a loan facility of €2.9 million (the "Facility") with Banca del Fucino S.p.A. (the "Lender") to refinance the Plant.

The Company can now confirm that it has successfully completed all performance improvements and achievement of performance criteria set by the Lender. The Lender has not been available to visit the Plant prior to the holiday period in December 2023, however it has now arranged to visit in early January 2024. The Company expects to be able to draw down the amount of the full Facility shortly after that visit, and will make a further announcement accordingly.

The Plant became operational in March 2023 and EQTEC completed handover protocols and transfer of plant operations to EQTEC Italia MDC Srl ("Italia MDC") in June 2023. The Company remains actively involved with supporting Italia MDC in its endeavours to drive more productive and continual operations.

Shareholders conversion notices

The Company on 19 December 2023 received two conversion notices pursuant to the Altair Group Investment Limited ("Altair") and Pitcole Limited ("Pitcole") Settlement Agreements as set out in the Company's announcement of 20 November 2023.

In light of the Company's capital reorganisation and share consolidation, which completes today with admission to trading on AIM of the Company's consolidated ordinary €0.01 shares ("Consolidated Shares"), the Pitcole Conversion Shares and Altair Conversion Shares shall be issued in the form of Consolidated Shares.

In accordance with the Pitcole Settlement Agreement, Pitcole has elected to convert a remaining balance of £400,000 into 13,986,014 new Consolidated Shares in the Company ("Pitcole Conversion Shares") at a price equal to the average of the daily VWAPs for each of the five consecutive trading days immediately prior to 18 December 2023 the date of the conversion notice which was 2.86p (as adjusted for the share consolidation).

In accordance with the Altair Settlement Agreement, Altair has elected to convert a remaining balance of the Altair Redemption Sum of £562,500 into 19,667,832 new Consolidated Shares in the Company ("Altair Conversion Shares") at a price equal to the average of the daily VWAPs for each of the five consecutive trading days immediately prior to 18 December 2023 the date of the conversion notice which was 2.86p (as adjusted for the share consolidation).

Upon conversion of this remaining balance under the Altair Settlement Agreement, the Company is released from all liabilities and obligations pursuant to the debt facility with Altair announced on 09 December 2022.

Application will be made to the London Stock Exchange for both the Pitcole Conversion Shares and the Altair Conversion Shares, being in aggregate 33,653,846 new Consolidated Shares (the "New Shares"), to be admitted to trading on AIM. Dealings in the New Shares, which will all rank pari passu with the Company's Consolidated Shares at that time, are expected to commence at 8.00 a.m. on or around 29 December 2023.

Following Admission, there will be 181,485,890 Consolidated Shares in issue. The Company holds no Consolidated Shares in Treasury. This number may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

EQTEC Italia MDC Srl ("Italia MDC") is a company registered in Italy for the purpose of transforming agricultural and forestry waste into electrical power and biochar in a relatively remote and heaviliy agrarian community. The Company currently owns 49.0% of Italia MDC, with an option to acquire further equity in future.

Italia MDC owns and operates a 1 MWe plant in Gallina (the "Plant"), a village near Castiglione d'Orcia in Tuscany's Val d'Orcia, an area considered to be the region's most scenic. It is on a site originally owned by Toscana Cereali Societa' Cooperativa Agricola, from whom Italia MDC is currently leasing and with whom Italia MDC have agreed to purchase the land by 30 July 2024. With EQTEC technology at its core, the Plant is capable of converting multiple types of biomass feedstock into electrical power and thermal energy.

Initially, the Plant is converting higher-density wood waste into electrical power for export to the national grid, for which a connection has been secured with a preferential tariff. In addition to the electricity, the Plant is producing biochar for purchase by two European wholesalers of the product. Thermal energy produced through the continuous EQTEC thermochemical conversion process is being recycled to dry the feedstock, improving the Plant's waste-to-energy conversion efficiency.

Feedstock is being delivered by multiple suppliers, and Italia MDC has identified additional, potential suppliers in order to maintain continuity of supply and leverage over cost and availability. Further, the Plant has been upgraded to support lower-density feedstocks such as straw or other agricultural waste. This ability to switch amongst feedstock types and suppliers adds resilience to Italia MDC's business model.

About EQTEC plc

Further information on the Company can be found at www.eqtec.com.