Business
Exclusivity Agreement for RDF Deeside Project
Exclusivity Agreement for RDF Deeside Project.
About this update from Forgent Plc
[{"type":"text","content":"\n \n \n RNS Number : 9317T\n EQTEC PLC\n 23 July 2020\n \n \n \n \n 23 July 2020\n \n \n EQTEC plc\n \n \n (\"EQTEC\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Exclusivity Agreement for RDF Deeside Project\n \n \n \n \n \n EQTEC plc (AIM: EQT), the technology solution company for waste gasification to energy projects, \n is pleased to announce that it has signed an Exclusivity Agreement \n (the \"Agreement\")\n with \n Logik Developments Limited (\"Logik\"), \n in respect of the Deeside Refuse Derived Fuel (\"RDF\") project.\n \n \n \n \n \n Deeside RDF Project\n \n \n Further to signing a Memorandum of Understanding (\"MOU\") with Logik, the owner of 6.27ha of land at the Deeside Industrial Estate, Flintshire, Wales, which currently has planning permission for a waste management facility comprising the recycling of waste, the production of RDF and an anaerobic digestion facility (the \"Project\"), and completing initial due diligence, the Company entered into an exclusivity agreement on 23 July 2020 pursuant to which Logik has granted the Company exclusivity to enter into a potential transaction wherby EQTEC can obtain full ownership of the Project from Logik via acquisition of the Project SPV. \n \n \n \n \n \n In consideration for the granting of exclusivity, EQTEC has paid Logik £100,000, which would be deducted from the final purchase price for the Project. The exclusivity runs until March 2021 and can be extended by mutual agreement. The proposed purchase price for the Project will be £4.6 million plus a further amount to be calculated based on a formula linked to the final planning achieved and a detailed financial model of the Project (subject to a maximum further amount of £5.4 million). Any such transaction, inter alia, will be subject to definitive agreements, further due diligence and and funding. Under the MOU, EQTEC will act as lead developer for the Project, having responsiblity for, inter alia, introducing potential project investors and EPC and O&M partners.\n \n \n \n \n \n The existing planning permission on the Project provides for the \n construction and operation of a waste management facility for municipal, commercial and industrial waste \n for 182,000 tonnes of annual residual waste, and an anaerobic digestion plant which is projected to prod...