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EQTEC plc (LSE:EQT), a leading technology company specializing in waste-to-value solutions, has provided a key update on its settlement agreement with Logik Developments Limited and its subsidiary Logik WTE Limited (collectively referred to as "Logik"). This agreement, pivotal to EQTEC’s financial positioning, hinges on the sale of a site at Weighbridge Road in Deeside Industrial Park, a transaction that has faced several delays but is now moving closer to completion.
Background: The Settlement Agreement
The settlement agreement between EQTEC and Logik Developments is tied to the sale of land in Deeside Industrial Park, where the parties have been engaged in negotiations and legal processes to finalize the transaction. As per the initial arrangement, EQTEC was to receive a payment of £2 million from Logik, conditional upon the successful sale of the site.
In early May 2024, EQTEC announced it had received written confirmation from Logik regarding the conditional exchange for the land sale, with a completion deadline initially set for 28 June 2024. However, this deadline was later extended to 12 July 2024, as the parties required additional time to finalize the necessary legal documentation and funding agreements.
Recent Developments: Moving Toward Completion
As of 29 July 2024, EQTEC informed stakeholders that dialogue between the parties involved in the sale was ongoing, with legal execution of the final funding documents still in progress. At that time, no new long stop date was agreed upon, although completion was anticipated within the first half of August 2024.
In the latest update, EQTEC has confirmed that the buyer and Logik have executed an amendment to their existing agreement, rendering the exchange for the sale of the land unconditional. This development signifies that all conditions for the sale have been met, paving the way for the final stages of the transaction.
Importantly, a new long stop date of 16 August 2024 has been set, by which time the completion funds transfer is expected to be initiated following the contractual closing. Assuming the transaction proceeds according to this revised timetable, EQTEC is due to receive £2 million under the settlement agreement, a sum that will bolster the company’s financial resources and support its ongoing operations.
Impact on EQTEC: Financial and Strategic Significance
The anticipated receipt of £2 million is a crucial financial milestone for EQTEC, particularly as the company continues to expand its waste-to-value technology solutions across the globe. This payment will not only enhance EQTEC's cash flow but also provide additional capital to invest in its strategic initiatives, including the development of distributed, decarbonized energy infrastructure.
EQTEC's proprietary technology converts waste into clean energy, producing hydrogen, biofuels, and electricity through advanced gasification processes.