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(Sharecast News) - Eqtec announced on Thursday that it has raised 1.5m through a share subscription with Compact WTL Tech, a wholly owned subsidiary of CompactGTL, marking a significant step in the companies' evolving collaboration in waste-to-liquid (WTL) technology.
The AIM-traded company said the subscription comprised 176.5 million new shares at 0.85p each, representing a 39% premium to Eqtec's closing price on 9 April, and would give CompactGTL an approximate 28.9% stake in the enlarged share capital.
It said the agreement also included 88.2 million warrants exercisable at 1.5p per share over four years.
A new joint venture entity would be formed in the United Arab Emirates to lead WTL operations across the Middle East-North Africa region, with the goal of attracting regional investment and strategic partners while leveraging the companies' complementary intellectual property.
Proceeds from the investment would fund continued development of integrated syngas-to-liquid fuel technologies, including a stake in a containerised pilot plant, and support Eqtec's working capital needs.
The board said the deal also included proposed plans to transfer existing loan facilities to CompactGTL.
"CompactGTL's extensive expertise in gas-to-liquids (GTL) technology and its proven track record in synthetic fuel production make it an ideal partner as we advance our commercial deployment of integrated WTL solutions," said Eqtec chief executive officer David Palumbo.
"Their deep understanding of modular GTL solutions and experience in transforming natural gas into high-value liquid fuels align perfectly with EQTEC's mission to drive innovation in waste-to-fuel technologies."
Palumbo said the investment will allow Eqtec to accelerate the deployment of integrated waste-to-liquid fuel solutions at scale, reinforcing its position in the "rapidly expanding" synthetic fuels market.
"We look forward to leveraging CompactGTL's technical expertise, investor relationships, and strategic insight to maximise value for our shareholders."
At 1232 BST, shares in Eqtec were down 0.82% at 0.61p.
Reporting by Josh White for Sharecast.com.
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