Business
Placing and conversion of loan facility
Placing and conversion of loan facility.
About this update from Forgent Plc
[{"type":"text","content":"\n \nRNS Number : 9280Y EQTEC PLC 09 March 2017 \n\n9 March 2017\n \nEQTEC plc\n(\"EQTEC\" or the \"Company\")\n \nPlacing and conversion of loan facility\n \nEQTEC PLC (AIM: EQT), is pleased to announce that it has raised £485,000 (before expenses) through a placing of 7,461,538 new ordinary shares of €0.001 each in the capital of the Company (\"Ordinary Shares\") at 6.5 pence per share (\"Placing Shares\") (the \"Placing\").\n \nEQTEC will use the net proceeds from the Placing primarily in continuing the development of the Newry Biomass project, including advancing some of the initial work streams involved in re-powering the plant such as engineering, design and preliminary mechanical and electrical works in readiness for the financing, construction and commissioning of the project by Newry. The proceeds will also be used for continuing investment in its pipeline of projects with updates to follow as appropriate. \n \nIn addition, the Company has also agreed with its major shareholder EBIOSS Energy AD (\"EBIOSS\") to convert an amount of €335,717, being equal to the outstanding balance of capital plus accrued interest due under the loan facility dated 8 January 2016, which was amended on 12 December 2016 (the \"Loan Facility\"), into 4,491,197 new Ordinary Shares at a conversion price of 6.5 pence per share (\"Conversion Shares\") (the \"Conversion\"). Accordingly, following the Conversion, the obligation to repay the amounts drawn to date under the Loan Facility plus accrued interest will be deemed to have been satisfied in full. A further €482,000 is still available to be drawn down under the Loan Facility.\n \nEBIOSS currently has a 50.89 per cent. interest in the Company and therefore is deemed to be a related party of the Company under the AIM Rules for Companies (\"AIM Rules\"). Accordingly, the Conversion is deemed to be related party transaction pursuant to Rule 13 of the AIM Rules. The directors of the Company, having consulted with the Company's Nominated Adviser, Strand Hanson Limited, consider that the terms of the Conversion are fair and reasonable insofar as the Company's shareholders are concerned.\n \nPursuant to the Placing and Conversion, application has been made for the admission of 11,952,735 new Ordinary Shares to trading on AIM (\"Admission\"). The new Ordin...