The EQTEC PLC (LON: EQT) share price surged 38.5% after announcing that it had signed an agreement to sell 95% of its France Market Development Centre (MDC) to its partner on the project Idex. Eqtec will receive a fixed consideration of €750,000 once the transaction is complete.
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The sale has been formalised through a share purchase agreement (SPA), where Idex has acquired 95% of the share capital of Grande-Combe SAS, which is the project company operating the France MDC. Investors cheered the news, as evidenced by the rally in Eqtec’s share price.
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Idex has agreed to take responsibility for the construction and commissioning of the France MDC. At the same time, Eqtec remains the licensor and integrator of the core technology and retains the right to use the France MDC as an MDC.
Eqtec retains a 5% carried interest in the project, which does not require any financial investment from the company. The company is also entitled to additional payments of up to €750,000 until the full commissioning of the France MDC, based on attaining certain performance milestones.
Furthermore, EQTEC will receive fees for engineering services, equipment, commissioning and licensing from Q4 2023 – Q1 2025, estimated to amount to approximately €15 million. The firm can also use France MDC for one prospective client visit per month, with more visits possible under specific terms.
David Palumbo, EQTEC CEO, commented: “We believe this Agreement cements our commitment to the live operation of the France MDC whilst evidencing the growing profile of EQTEC technology among well-established utilities and operators of energy infrastructure. This third MDC and second project in partnership with Idex, which is owned by leading private equity firm Antin Infrastructure Partners, indicates growing demand from innovative, blue-chip partners and funders to build and operate new energy infrastructure powered by EQTEC to futureproof their operations.”
Benjamin Fremaux, Idex CEO, commented: “Idex has a strong track record deploying waste-to-energy infrastructure in France that contributes to French baseload energy requirements. Idex is willing to grow its footprint in this domain and has selected EQTEC technology to do so.”
*This is not investment advice.
Eqtec share price.
The Eqtec share price surged 38.46% to trade at 0.18p, from Tuesday’s closing price of 0.13p.
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