Eqtec Share Price Plunged 25% on Discounted £3.5M Capital Raise

The EQTEC PLC (LON: EQT) share price plunged 25% after revealing that it had conditionally raised £3.5 million before expenses via a placing where institutional investors and others subscribed directly to placing units priced at 0.22p each. Each placing unit consisted of one new ordinary share of €0.001 each and half of one Ordinary Share purchase warrant.

Investors’ negative reaction to the news was expected, given that the participating investors were offered a significant discount to Eqtec’s closing share price on 20 March 2023. The company’s share price decline reflected the discount offered to the investors.

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The company, which specialises in waste-to-value solutions for hydrogen, biofuels, and energy generation, also revealed that it had reprofiled existing loan facilities, including converting certain existing debt into equity and settling strategic supplier fees in new Ordinary Shares. Both transactions were completed at the Placing Price.

Eqtec also plans to raise £550,000 (gross) via a broker option and has appointed Global Investment Strategy UK Limited as its placing agent. Existing shareholders can apply for placement units via GIS from now up to 4.45 p.m. UK time on 31 March 2023. 

The company will use the net proceeds from the placement to progress its Market Development Centres (MDCs) and fund new Research & Development activities while ensuring business continuity. The firm will also use some of the proceeds to settle part of its debts. 

Eqtec confirmed that the funds raised will help cement its position as a world-class technology innovator powering decarbonised, distributed, new energy infrastructure through waste-to-value solutions for biofuels, hydrogen and energy generation. 

David Palumbo, Eqtec’s CEO, commented: “This targeted Placing is focused on supporting strategic execution in 2023. With the Italia MDC now operational, we have turned our attention to Croatia and France, growing our portfolio of well-established and highly credible partners developing projects and deploying EQTEC’s Industrial, Utility and Municipal business solutions. Demand remains strong, and focused execution remains imperative in the current, uncertain market. We look forward to updating shareholders as our solutions and brand gain global traction and the business grows accordingly.”

*This is not investment advice. 

Eqtec share price. 

The Eqtec share price plunged 25% to trade at 0.21p, from Monday’s closing price of 0.28p.