EQTEC PLC (AIM:EQT) said it has arranged an unsecured loan facility of up to £2mln with its major shareholder, Altair Group, to support working capital and acceleration of project sales and technology deployment, in particular for its Market Development Centres (MDCs).
British Virgin Islands-based investment company Altair owns a 18.2% stake in the waste-to-value specialist.
In a statement, EQTEC chief executive David Palumbo said: “We are grateful to Altair for their unwavering support of EQTEC and their continued support of our business strategy. We remain committed to execution of our strategy, driving MDCs and key projects to close, deploying EQTEC technology to more places, more often and growing the business to its full potential."
An MDC in Italy, seen as a showcase for EQTEC technology in a live commercial environment as well as a clean solution for converting locally sourced agricultural waste into energy, is due to go live this month.
The loan has a term of 24 months and carries an annual interest rate of 8.0% on funds drawn and outstanding, with interest payable quarterly in advance, as well as a 2.5% fee for arrangement of the facility.
The AIM-listed company is also issuing to Altair Group 666,666,666 warrants with a strike price of £0.0045, which is a premium of 55% to the closing share price overnight, valid for a period of two years.
As the arrangement of the loan constitutes a related party transaction, EQTEC’s directors consulted the company's nominated adviser, Strand Hanson, and found they consider the terms of the facility to be fair and reasonable.