Eqtec transfers MNRG shares under guarantor agreement

The AIM-traded firm said that to satisfy its guarantee obligations to GIS, it transferred £0.1m of MNRG shares to GIS on 3 October.

On the basis of the transaction, its obligations to GIS as guarantor were now fully settled.

As a result, the company said its holding in MNRG had decreased to 5.02% of the issued voting share capital, from a previous 13.31%.

In consideration, MNRG had subsequently issued £0.1m of zero-coupon, unsecured convertible loan notes to Eqtec, giving it the right to convert the notes in whole or in part to MNRG shares.

Eqtec said it could convert the notes either when MNRG had available share authority headroom, convertible at the closing, mid-market share price on the day prior to conversion;, or if a prospectus was issued by MNRG, enabling it to issue sufficient shares convertible at the price at which any funds were raised by MNRG in connection with the prospectus.

“The purpose of the convertible loan notes is to allow the company to re-establish its equity position in MNRG at approximately the same level that existed prior to discharge of its GIS liability as guarantor on behalf of MNRG,” the board explained in its statement.

“The exact number of shares to be issued to the company might be higher or lower than the number applied to satisfy the guarantee.”

At 1122 BST, shares in Eqtec were down 5.26% at 0.27p.

Reporting by Josh White at Sharecast.com.