Drawdown on Facility & other funding updates

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, announces a further drawdown on its syndicated debt facilities and proposed reduction to balances outstanding under the long-term secured facility with YA II PN Ltd and Riverfort Global Opportunities PCC Limited (the "YA-RF Lenders").

Syndicated Facility Drawdown

On 20 November 2023, the Company announced that it had refinanced the historic debt facilities with Altair Group Investment Limited ("Altair"), the "YA-RF Lenders") and with Pitcole Limited (together, the "Refinance Investors") through entering into a new syndicated debt facility of up to £3.0 million with the Refinance Investors (the "New Syndicated Facility"), with £950,000 being drawn down in November 2023.

The Refinance Investors and the Company have agreed to a further advance of £245,000 pursuant to the terms of the New Syndicated Facility (the "Drawdown").

The Drawdown is intended to provide working capital in advance of the anticipated receipt of the proceeds from the settlement with Logik Developments, in particular the expected completion of the sale of land from which the settlement sum of £2.0 million will be paid to the Company. Further details regarding the sale of land, including the steps to completion, were announced on 1 May 2024.

In accordance with the terms of the New Syndicated Facility, the Refinance Investors will be granted an aggregate of 7,359,671 warrants in the Company with an exercise price of £0.02656 per Warrant (being 150% of the average of the 5 daily VWAPs prior to execution) and a 48-month term from grant.

As detailed in the Company's announcement on 13 February 2024, the Refinance Investors have agreed not to convert any of the balances outstanding pursuant to the New Syndicated Facility until 30 June 2024.

Upon the earlier of (a) the closing of the Verde Subscription (update announced on 19 April 2024) and (b) the closing of the Logik settlement, the Drawdown (inclusive of fees and coupon) will be repaid to the Refinance Investors.

Repayment and conversion for reduction of debt balances

In addition to the New Syndicated Facility, the YA-RF Lenders are party to a YA-RF Lenders secured facility of up to £10.0 million as detailed in the Company's announcement on 20 November 2023 (the "YA-RF Secured Facility"). No further funds have been advanced pursuant to the YA-RF Secured Facility which currently stands with £5.1 million drawn and no further fees have been accrued since that time. Upon the anticipated receipt of funds pursuant to the Logik settlement, 20% of the proceeds of the Logik settlement amounting to £400,000 will be paid to the YA-RF Lenders to reduce the balances outstanding pursuant to the YA-RF Secured Facility.

Riverfort Global Opportunities PCC Limited has agreed with the Company to convert part of the outstanding balances of the YA-RF Secured Facility by subscribing £200,000 for 12,802,031 shares in the Company at an issue price of 1.562p per share, representing a 5.3% discount to the mid-market closing price of 3 May 2024.

Admission and Total Voting Rights

The new Ordinary Shares pursuant to the conversion are being issued utilising the Company's existing share authorities and will rank pari passu in all respects with the Company's existing Ordinary Shares.

Application will be made to the London Stock Exchange for admission of the 12,802,031 new Ordinary Shares being issued pursuant to the conversion and it is expected that Admission will become effective and that dealings in the new Ordinary Shares on AIM will commence at 8.00 a.m. on or around 13 May 2024.

Following Admission, there will be 194,287,921 Ordinary Shares in issue. The Company holds no Ordinary 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.

David Palumbo, CEO of EQTEC, commented:

"The additional funding from Altair, YA and RiverFort will provide us with the flexibility required to address working capital requirements, pending the anticipated Logik settlement payment. We thank our funders for their continued support."

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