Update on Verde Subscription & Syndicated Facility

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 that further to its update announcement on 19 April 2024, pursuant to which the proceeds of the Subscription were contracted to be received by the Company on or prior to 16 May 2024, no funds have been received by the Company from Verde Corporation ("Verde"). Consequently, the Directors consider Verde to be in default of the Subscription Letter and the Subscription has been terminated and reserve all legal rights under the contractual arrangements therein.

As a result of the Subscription termination, the agreement for conversion of debt into equity by significant shareholders Pitcole Limited and Altair Group Investment Limited, which was conditional upon the Verde Subscription, will not be executed. However, there remains in place an automatic obligation to convert upon a future fundraise of £1,000,000 gross or more as per the agreements of the New Syndicated Facility announced on 20 November 2023.

Following discussions with the YA-RF Lenders, the board confirms that the YA-RF Lenders have agreed not to convert their remaining £600,000 under the New Syndicated Facility whilst negotiations are ongoing to finalise a longer-term financing solution with no conversion rights, for which a non-binding term sheet has been agreed. A further update is expected to be made in due course, although there is no guarantee that the anticipated longer-term financing solution will be concluded or as to the terms of any such financing.

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