Shares in EQTEC PLC (AIM:EQT) surged 59% to 3.58p after its Italian plant received approval to draw down €2.9 million of loan funds to carry out its growth plan.
Some of the loan funds will be used to repay part of the €2.6 million of loans made by the AIM-listed parent company.
Tuscany-based EQTEC Italia MDC, which transforms agricultural and forestry waste into electrical power and biochar, intends to use the funds to "support its business plan and to fund additional performance improvements as Italia MDC pursues further operational efficiency and commercial opportunities", the AIM-listed company said.
The loan from Banca del Fucino is guaranteed up to 80% by MedioCredito Centrale, which is controlled by the Italian Ministry of Economy.