Shares of EQTEC PLC (LON: EQT) surged 9.89% today extending a three-day rally that started on Monday after the gasification company announced that the exclusivity period on the Billingham Energy project had been extended up to December 18, 2020.
The company had signed a conditional MoU with Scott Bros Enterprises Limited to jointly develop the Billingham Energy waste gasification and power plant in Haverton Hill, Billingham, in the UK on May 8, 2020.
Eqtec revealed that it had made solid progress on the project including holding discussions with potential co-developers and funders; obtaining a full quotation for the grid connection from the grid operator, Northern Powergrid; and completing the technical due diligence with insurance providers.
Having achieved the above milestones, the extension of the exclusivity period will give Eqtec time to finalise the execution of a legally binding option agreement with Scott Bros.
Once the two sides agree, EQTEC and its partners will have the right, but not the obligation, to purchase the entire issued share capital of Billingham EFW Limited, the project’s special purpose vehicle, from Scott Bros, subject to agreement on consideration and other terms.
Investors are waiting patiently for the next announcement, which could reveal that the two sides have signed an agreement based on the above terms.
Eqtec share price
Eqtec shares today surged 9.89% to trade at 0.60p having rallied from Tuesday’s closing price of 0.546p.