EQTEC PLC (LON:EQT) jumped after the company said it had raised a total of £958,500 from a subscription of shares to new and existing investors, mainly among five “strategic” shareholders.

The waste-to-energy firm said it issued 766mln new shares at a  price of 0.125p each. In addition, a warrant will be issued to acquire one further share for every two shares investors have subscribed to, for a period of two years.

READ: EQTEC jumps as it signs first commercial agreement in France to develop biogas power plant

The group said the cash injection will be used to develop the group’s near-term projects and for working capital purposes.

EQTEC said existing shareholder Altair Group Investment Limited is now a “cornerstone investor”, having bought a further 268mln new shares taking its total stake in the AIM-listed company to 28.87%.

“We are pleased to confirm this equity subscription, as it will strengthen the company's balance sheet and provide working capital to progress our near-term projects as we continue to develop, establish and strengthen our strategic partnerships,” EQTEC's chief executive David Palumbo said in a statement.

“Having certain of our key strategic service providers agree to receive payment in shares at a 100% premium to the subscription price demonstrates, we believe, the confidence of our key suppliers in our longer-term business plan,” he added.

The company also announced that it will issue, in aggregate, 80,070,440 ordinary shares to certain strategic service providers of Engineer, Procure and Construct Business Development and Advisory services to the group, who have agreed to receive shares in lieu of cash fees. These shares will be issued at an agreed value per share of 0.25p, a premium of 100% to the subscription price, thereby reducing the group's creditors by €232,763.

EQTEC shares jumped 13% higher to 0.16p on Monday morning.