Eqtec PLC on Thursday updated on the ‘positive’ progress on its settlement with Logik Developments Ltd and its wholly-owned subsidiary Logik WTE Ltd, detailing it now expects to receive £2.0 million due to the timing of a site sale by Logik.
Shares in Cork, Ireland-based thermochemical conversion technology company Eqtec were up 2.9% to 1.80 pence each in London on Wednesday at midday.
Last year, Eqtec claimed a breach of the share purchase agreement made between Logik Developments and Deeside WTV Ltd, an Eqtec subsidiary, in December 2020. It had said that the claims specifically relate to payments made by Eqtec and Deeside to Logik.
Eqtec had added that it had since January 2023 attempted to engage Logik, alleging Logik had failed to follow through on its agreements or meet with Eqtec.
Early last month, Eqtec said it agreed a deal with Logik and its subsidiary in which it would receive about £1.7 million by around early May, as Logik would pay the sum within the next business day of a sale of a site at Weighbridge Road in Deeside Industrial Park. This was expected to complete on or before Tuesday.
Eqtec on Wednesday said it has received written confirmation from Logik that exchange for the sale of the land to a proposed purchaser has now taken place.
Completion of the purchase remains conditional ‘only upon the the final legal execution of certain documents pertaining to the project’, Eqtec said.
It said the long stop date for completion is June 28 with completion expected by the end of this month.
Last month, Eqtec noted that if the sale was delayed to between May 1 and November 30, it would receive £2.0 million,. If it was delayed beyond November. Eqtec would receive the £2.0 million sum plus interest at 4% above the Bank of England base rate on any part of the settlement that it not paid according to the settlement terms.
Eqtec on Wednesday confirmed it is now due to receive £2.0 million under the settlement agreement, subject to conditions. It said it will provide a further update ‘in due course’.
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