EQTEC PLC (AIM:EQT) has announced a drawdown on its new syndicated debt facility, taking £245,000, and has proposed to reduce its exposure under its facility with Yorkville and Riverfort (the ‘YA-RF’ lenders).
The company, in November, announced the refinancing of its legacy debt facilities – held across Altair Group, the YA-RF lenders, and Pitcole – by agreeing to a new £3 million syndicated debt facility.
An initial £950,000 was drawn in November 2023, prior to the latest £245,000 drawdown.
This latest drawdown provides an injection of working capital whilst EQTEC awaits proceeds from a settlement with Logik Developments (from an anticipated completion of a land sale, to unlock £2mln for EQTEC).
EQTEC noted that the new drawdown did not involve the separate facility with the ‘YA-FR’ lenders, under which the balance remains £5.1 million of £10 million. The company added that it expects to use £400,000 of the Logik settlement funds to repay the YA-RF lenders facility.
Also Riverfort has agreed to a partial conversion of the outstanding balance, covering £200,000 which will equate to 12.8 million shares at an issue price of 1.562p (a 5.3% discount to the mid-market price).
"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,” chief executive David Palumbo said in a statement.
“We thank our funders for their continued support."