EQTEC PLC (AIM:EQT) has told investors it has cancelled its proposed share subscription deal with Verde Corporation after a series of rearranged deadlines that passed without a close.
The waste-to-value company, in a statement, said that no funds have been received from Verde since the funding deal was agreed.
“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,” EQTEC said.
EQTEC noted that other refinancing agreements were contingent upon the Verde investment, and, as a result, will now not proceed – including proposed equity-for-debt deals with significant shareholders Pitcole Limited and Altair Group Investment, and separate but similar arrangements with the YA-RF (Yorkville and Riverfort) lenders.
Alternate negotiations are ongoing to finalise a longer-term financing solution with no conversion rights, for which a non-binding term sheet has been agreed, EQTEC said.
It added that a further update is anticipated ‘in due course’ and, as is customary, cautioned that ‘there is no guarantee that the anticipated longer-term financing solution will be concluded or as to the terms of any such financing.’