EQT Eqtec Plc

17 May 2024

EQTEC plc

("EQTEC", the "Company" or the "Group")

Update on Verde Subscription and Syndicated Facility

EQTEC 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, announces that further to its update announcement on 19 April 2024, pursuant to which the proceeds of the Subscription were contracted to be received by the Company on or prior to 16 May 2024, no funds have been received by the Company from Verde Corporation ("Verde"). Consequently, the Directors consider Verde to be in default of the Subscription Letter and the Subscription has been terminated and reserve all legal rights under the contractual arrangements therein.

As a result of the Subscription termination, the agreement for conversion of debt into equity by significant shareholders Pitcole Limited and Altair Group Investment Limited, which was conditional upon the Verde Subscription, will not be executed. However, there remains in place an automatic obligation to convert upon a future fundraise of £1,000,000 gross or more as per the agreements of the New Syndicated Facility announced on 20 November 2023.

Following discussions with the YA-RF Lenders, the board confirms that the YA-RF Lenders have agreed not to convert their remaining £600,000 under the New Syndicated Facility whilst negotiations are ongoing to finalise a longer-term financing solution with no conversion rights, for which a non-binding term sheet has been agreed.   A further update is expected to be made in due course, although there is no guarantee that the anticipated longer-term financing solution will be concluded or as to the terms of any such financing.

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014, as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended, and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

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About EQTEC plc

As one of the world's most experienced thermochemical conversion technology and engineering companies, EQTEC delivers waste management and new energy solutions through best-in-class innovation and infrastructure engineering and value-added services to owner-operators. EQTEC is one of only a few technology providers directly addressing the challenge of replacing fossil fuels for reliable, baseload energy. EQTEC's proven, proprietary and patented technology is at the centre of clean energy projects, sourcing local waste, championing local businesses, creating local jobs and supporting the transition to localised, decentralised and resilient energy systems.

EQTEC designs, specifies and delivers clean, syngas production solutions in the USA, EU and UK, with highly efficient equipment that is modular and scalable from 1MW to 30MW. EQTEC's versatile solutions process 60 varieties of feedstock, including forestry waste, agricultural waste, industrial waste and municipal waste, all with no hazardous or toxic emissions. EQTEC's solutions produce a pure, high-quality synthesis gas ("syngas") that can be used for the widest range of applications, including the generation of electricity and heat, production of renewable natural gas (through methanation) or biofuels (through Fischer-Tropsch, gas-to-liquid processing) and reforming of hydrogen.

EQTEC's technology integration capabilities enable the Group to lead collaborative ecosystems of qualified partners and to build sustainable waste reduction and green energy infrastructure around the world.

The Company is quoted on AIM (ticker: EQT) and the London Stock Exchange has awarded EQTEC the Green Economy Mark, which recognises listed companies with 50% or more of revenues from environmental/green solutions.

Further information on the Company can be found at www.eqtec.com.