EQTEC To Cancel GBP7.5 Million Convertible Loan Deal And Repay Amounts

16th Mar 2018 12:52

LONDON (Alliance News) - EQTEC PLC said Friday it has decided not to draw down any more funds from its recently-arranged GBP7.5 million convertible loans facility and will seek to repay all funds drawn down as soon as possible.

EQTEC - a waste energy recovery firm - agreed the unsecured, convertible loan note facility in late February with "one investor." The funds were to be used, the company explained at the time, to "accelerate its growth strategy."

Under the deal, an initial GBP1.5 million tranche was committed later on February 28. Further draw downs on the debt were at the discretion of EQTEC itself with each tranches having to be between GBP1.5 million and GBP2.0 million in size.

On Friday, however, EQTEC agreed to not proceed with any further draw downs. What is more, it had agreed "in principle" and had "preliminary discussions" with the investors regarding cancellation of the loan note agreement.

EQTEC also emphasised it intended to redeem the existing convertible notes outstanding at the "earliest opportunity."

A further announcement will be issued in due course.

Shares in EQTEC were 6.7% higher at 0.80 pence on Friday.

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