EQTEC to Combine with EQTEC Iberia and Create a Leading Company in Waste Gasification to Energy Segment in UK

CORK, Ireland–(BUSINESS WIRE)–EQTEC PLC (“EQTEC”, “Company” or the “Group”) (AIM: EQT), the technology
solution company for waste gasification to energy projects, announces
that it has entered into non-binding heads of terms (“Heads of Terms”)
with Inava Ingenieria de Analisis SL (“Inava”) and the Company’s
majority shareholder, EBIOSS Energy SE (“EBIOSS”) to spin off their
subsidiary, EQTEC Iberia SRL (“EQTEC Iberia”) and combine it with EQTEC
plc (the “Proposed Transaction”).

EQTEC plc will undertake a fundraising that is expected to comprise a
placing of new ordinary shares to raise additional working capital for
the enlarged group as well as fund the immediate pipeline of projects.
VSA Capital have been appointed Lead Broker and Financial Adviser for
the fundraising.

Rationale for the Proposed Transaction
The directors of
EQTEC (the “Directors”) believe that the combining of EQTEC plc and
EQTEC Iberia would create a leading company with proprietary advanced
gasification technology which is used in industrial size power plants to
convert waste into synthetic gas to generate electricity. Together, the
enlarged business will have a highly experienced management team with
knowledge of energy markets, waste supply and fuel sources, project
development engineering and clean technologies with a pipeline of
projects as set out below.

The Directors believe that the enlarged group will have the most
advanced modular gasification technologies available on the market which
offers higher efficiency compared to the other power generation
technologies. As a result, the Directors believe that this increased
efficiency can allow EQTEC to offer more attractive gate fees than
competitors resulting in what the Company believes is a competitive
advantage.

On 10 January 2017, the Company stated, “In order to avail of the
opportunities presenting themselves, particularly in the energy from
waste market in the UK, a strategic partnership with a larger group such
as EBIOSS Energy with its own proprietary technology is the best path
forward. The Board believes that the existing collaboration between the
parties and the existing cooperation in relation to project pipeline in
the UK, means that it makes strategic sense to have EBIOSS Energy as the
majority shareholder in REACT (now EQTEC PLC), both financially and
operationally.” The Directors maintain that this is still the position
and the announcement today is the logical next step in the process
commenced earlier in the year.

Pipeline of Projects
The enlarged business is expected to
have a substantial combined pipeline of projects in UK and Croatia.
EQTEC Iberia has recently announced progress with several gasification
projects in the UK and it is the intention that as part of the Proposed
Transaction, the contracts of these projects will be transferred to the
enlarged EQTEC Plc and implemented by the Company. These projects
include:

• Reliable Melton Hull and Reliable Seal Sands projects in which EQTEC
  Iberia will supply its patented gasification technology, EQTEC
  Gasifier Technology, as well as supervise the assembly and
  commissioning of the plant
• Zebec Energy project located in municipality of Usk, Wales in which
  EQTEC Iberia will provide a turkey solution including designing,
  supplying gasification technology, and commissioning the plant

The pipeline also includes the previously announced Catfoss Newcastle
and Renewables Hull projects in the UK and the agreement with the
Croatian energy services company SENSE ESCO Ltd. for the supply of three
gasification plants for the conversion of waste to be installed in
Croatia as announced by EBIOSS, as a substantial shareholder of EQTEC
Iberia, on MAB the Spanish Alternative Equity Market.

The Proposed Transaction, if completed, will constitute a reverse
takeover (“RTO”) under the AIM Rules for Companies (the “AIM Rules”) and
therefore, in accordance with Rule 14 of the AIM Rules, will require the
publication of an AIM admission document (“Admission Document”) and
approval of shareholders of the Company in general meeting.

In accordance with Rule 14 of the AIM Rules, trading in the Company’s
ordinary shares will be suspended on AIM from 7.30 a.m. today, 17 July
2017, until the publication of the Admission Document or confirmation is
given that the Proposed Transaction is no longer proceeding. While the
Company will seek to publish the Admission Document as soon as possible,
the timing of this cannot yet be accurately forecast.

The Opportunity
The World Bioenergy Association (“WBA”)
states that waste management is a fast growing environmental business in
the world today. Its report on Energy Recovery from Waste states that
the annual global waste generation accounts for 7-10 billion tonnes in
total, out of which approximately 2 billion tonnes are categorised as
municipal solid waste (MSW). It is the intention of the enlarged EQTEC
to tackle this increasing problem. WBA states that the advantages of
using an energy recovery from waste system are:

• It reduces the volume of waste up to 96%
• Production of heat and electricity along with solid waste management
• Better sanitation, lower risk of contamination and diseases
• It has climate change impact as producing energy from waste avoids
  potential emissions from landfilling

Gerry Madden, Chief Executive Officer of EQTEC plc said: “We are
delighted to be taking this important step in the next stage of
development of the business. It is a logical step to take after
partnering with EBIOSS at the start of the year. A lack of domestic
incineration and gasification capacity is forcing the UK to pay European
incinerators to take our waste. Now, by using our best-in-class
technology we have an opportunity, once the transaction is concluded, to
redirect this waste to our pipeline of UK projects, thereby becoming a
leading player in creating electricity by converting waste into
synthetic gas.

“We now look to the future with the goal of realising the significant
value that has been identified from combining with EQTEC Iberia.”

The Company looks forward to updating the market with further
information in due course.

Contacts

EQTEC PLC
Gerry Madden / Brendan Halpin, +353 (0)21 2409 056
or
VSA
Capital Limited – Lead Broker and Financial Adviser
Andrew Monk
/ Andrew Raca, +44 (0)20 3005 5000
or
Luther Pendragon –
Financial PR
Harry Chathli, Ana Ribeiro, Alexis Gore, +44 (0)
207 618 9100