Business
Sale of France Market Development Centre to Idex
Sale of France Market Development Centre to Idex.
About this update from Forgent Plc
[{"type":"text","content":"\n\n12 July 2023\n \nEQTEC plc\n(\"EQTEC\", the \"Company\" or the \"Group\")\n \nSale of France Market Development Centre to Idex\n \nEQTEC plc (AIM: EQT), a global technology innovator powering distributed, decarbonised, new energy infrastructure through its waste-to-value solutions for hydrogen, biofuels and energy generation is pleased to announce that it has agreed with French infrastructure owner and utility company Idex to the sale of 95% of the share capital of Grande-Combe SAS (\"Grande-Combe\"), the project company for the Company's France Market Development Centre (\"MDC\") and the project to construct and commission it (\"France MDC\").\n \nIdex's acquisition of Grande-Combe from the Company has been formalised through execution of a share-purchase agreement (the \"SPA\") and a shareholders' agreement (together with the SPA, the \"Agreement\"). Under the terms of the Agreement, Idex acquires the project for construction and commissioning of France MDC and EQTEC remains the integrator and licensor of core technology, also retaining the right to utilise France MDC as a MDC.\n \nHighlights\n\n\n\n•\n\n\nUnder the SPA, Idex acquires 95% of the share capital in Grande-Combe, with EQTEC retaining a 5% carried interest; EQTEC's carried interest requires no financial investment by EQTEC;\n\n\n\n\n•\n\n\nIn respect of the acquired share capital, the Company receives a fixed consideration of €750,000, payable at completion of the transaction (the \"Fixed Consideration\");\n\n\n\n\n•\n\n\nIn addition to the Fixed Consideration, the Company is eligible to receive additional payments up to full commissioning of the France MDC, subject to achieving performance milestones and for a combined total of up to €750,000;\n\n\n\n\n•\n\n\nIn addition, under the Agreement, EQTEC will receive fees for engineering services, equipment, commissioning and licensing over the period Q4 2023 - Q1 2025, estimated to amount in total c. €15 million; and\n\n\n\n\n•\n\n\nUnder the Agreement, the Company is entitled to utilise France MDC for one prospective client visit per month, with more visits possible under specific terms.\n\n\n\n \nThe Agreement follows the Company's announcement on 27 March 2023 that it and Idex had been awarded a project by the Limoges Métropole in Nouvelle-Aquitaine, France through which the partner...