The acquisition will be supported by a new fundraising, via a placing of new shares, and is expected to create ‘a leading company in waste gasification to energy”.
As a result of the deal, the enlarged EQTEC business will have a pipeline of projects in the UK (plus interests in Croatia) including the Reliable Melton Hull and Reliable Seal Sands projects, as well as a Zebec Energy project in Usk, Wales.
In Croatia, the group will have service contracts relating to three gasification plant developments.
“We are delighted to be taking this important step in the next stage of development of the business. It is a logical step to take after partnering with EBIOSS at the start of the year,” said Gerry Madden, EQTEC chief executive.
“A lack of domestic incineration and gasification capacity is forcing the UK to pay European incinerators to take our waste.
“Now, by using our best-in-class technology we have an opportunity, once the transaction is concluded, to redirect this waste to our pipeline of UK projects, thereby becoming a leading player in creating electricity by converting waste into synthetic gas.”
Heads of terms signed
A non-binding heads of terms has been signed, laying out a proposal to combine the EQTEC waste gasification business with EBIOSS Energy’s EQTEC Iberia subsidiary.
Since early 2017, the company formerly known as React Energy has been working on a deal with EBIOSS that would allow it to access the former’s proprietary technology.
The deal will be classified as a reverse takeover under AIM rules, as such EQTEC Plc has been temporarily suspended from trading.
EBIOSS inked a €5.15mln investment deal in the AIM-quoted company, then named React Energy Plc, back in February. Presently, EBIOSS owns just over 50% of EQTEC Plc shares.