- Eqtec shares edged higher after issuing an update on its strategic partnerships.
- Investors barely reacted to the news, which had minimal impact on the company’s finances.
- Eqtec shares have fallen 51.4% since January and appear quite attractive to long term investors at current prices.
The EQTEC PLC (LON: EQT) share price edged 4% higher after updating all its new and existing strategic partnerships with other companies.
The waste gasification company revealed that it had entered into a new Collaboration Framework Agreements (CFA) with H2 Energy Solutions Ltd, a German hydrogen technology investment and project development business.
The two companies agreed to collaborate on development opportunities to deploy waste-to-hydrogen projects and similar opportunities in Turkey and Germany.
The deal was motivated by Eqtec’s desire to exploit multiple offtake opportunities for its synthesis gas (syngas), having identified offtake potential at its Teeside project in Billingham and its Flintshire project in Deeside.
Eqtec recently announced a collaboration deal with John Wood Group PLC to develop and deploy go-to-market technology solutions for its synthetic natural gas product and hydrogen production.
The press release also outlined Eqtec’s existing Framework Partnership Agreement (FPA) with MetalNRG unveiled on 22 March 2021. At the time, Eqtec proposed to acquire MetalNRG shares worth £500,000, which it did by May 2021.
The two companies agreed to a share-for-share exchange where MetalNRG will issue 100 million shares to Eqtec worth £295,000. In return, Eqtec will issue 23.6 million shares worth £295,000 to MetalNRG based on mid-market prices on 15 December 2021.
MetalNRG will also issue 50 million warrants to Eqtec with an exercise price of 0.45p. The warrants will mature three years after the issue date. Once the deal is completed, Eqtec will own 160.6 million shares in MetalNRG, equal to 14.1% of the company’s issued share capital.
David Palumbo, CEO of EQTEC, commented: “Throughout 2021, the importance of forming and working within robust, strategic collaboration agreements has been a key enabler of EQTEC’s strategic growth. These agreements have and will continue to deliver investment, new opportunities and capabilities with financing, complementary technologies, and EPC, allowing us and our partners to explore, qualify and launch in new markets.”
Eqtec shares have fallen 51.43% since January and appear pretty attractive to long term investors at current prices.
*This is not investment advice. Always do your due diligence before making investment decisions.
Eqtec share price rallied 4% to trade at 1.30p, rising from Wednesday’s closing price of 1.25p.
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