11th Jan 2019 11:12
LONDON (Alliance News) - EQTEC PLC on Friday said it has executed final legal documentation to amend its secured loan facility.
The stock was trading 26% higher on Friday at 1.28 pence a share.
The gasification technology company secured a loan facility of USD3.2 million from Cuart Investments Fund and associates in early July 2018 to repay an outstanding loan.
On Friday, EQTEC said it has a number of "significant" near-term opportunities and has therefore agreed to amend the loan facility in order to focus its financial resources on delivering projects.
Therefore, the company has agreed with the lenders that repayment will now commence on April 5, with a monthly fee of USD6,667.
In addition, EQTEC will make an outstanding interest payment of USD100,000 in cash by the end of January and USD386,893 no later than at the end of February, it said.
EQTEC had already amended the initial loan facility in October, when the parties agreed to increase the available amount to up to USD10 million. The outstanding drawn-down balance, as at Saturday last week, was USD3.2 million.
"EQTEC currently finds itself presented with significant contract opportunities which we wish to capitalise on," said Chief Executive Ian Price.
"To support these priorities, we have effected a significant improvement to our working capital position by amending the terms of the loan facility," added Chair Ian Pearson.
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