The EQTEC PLC (LON: EQT) share price plunged 26.7% after revealing that it had failed to reach a commercially acceptable deal with the initial investor interested in acquiring Logik WTE, stalling the further implementation of the Deeside project.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
The company, which specialises in converting unrecyclable waste products into biofuels, hydrogen and for energy generation, confirmed that the share purchase agreement (SPA) signed between Eqetec’s subsidiary, Deeside WTV and Logik WTE, a subsidiary of Logic Developments Limited, remains in force.
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Despite the two firms being unable to find a buyer for Logik WTE under the agreed timelines, they are still working together on the best way forward for the Deeside project. In addition, Eqtec remains committed to partnering with other stakeholders to fund and develop projects using its technologies.
Investors were unhappy with the news, given that Eqtec and Logik had spent months negotiating with a potential investor but could not agree on the sale terms for Logik WTE. The two companies are now back on the drawing board as they respond to interest in the project from other potential investors.
David Palumbo, EQTEC’s CEO, commented: “The Company remains highly committed to the Deeside project, to supporting Toyota Motor Company and local communities in Flintshire with clean, decarbonised solutions for waste management and energy generation. We are working with Anaergia, Inc. as an important technology partner to bring the best possible technologies to the site. Funding the Project remains a primary focus, and we believe that working with Logik and our other partners will help us achieve our objective. We look forward to updating the market as the Project develops.”
Eqtec shares broke below a crucial support zone on the news but recouped some initial losses, as shown in the stock chart below. Investors should keep a close eye on the Eqtec share price to see if the shares shall continue rising in the coming days.
As an Investor, I would wait for confirmation of a potential uptrend if the shares rise for two more days, indicating that the impact of today’s news was only temporary.
*This is not investment advice.
Eqtec share price.
The Eqtec share price plunged 26.67% to trade at 0.22p, from Tuesday’s closing price of 0.30p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.