EQTEC PLC (LON:EQT) said it has raised £10mln through an oversubscribed placing and subscription to accelerate project development amid what it said was “increasing” demand for its waste gasification to energy technology.

The AIM-listed firm said it had raised the funds through the placing of 2bn shares and a subscription for 222mln shares through PrimaryBid at 0.45p each, a 33.8% discount to its closing price on Thursday.

Meanwhile, the group also said certain directors had agreed to reinvest 40% of their salaries and fees for the next 12 months into shares at the placing price.

The company said that it will use the proceeds to accelerate the timing of identified projects to financial close and invoicing, as well as settling outstanding principal, interest and fees due to Riverfort Lenders worth up to around £311,000.

EQTEC added that the funds will be used to boost further intellectual property development, contract suite improvement, internet of things software development and additional human resources.

“We are pleased to welcome many new leading blue-chip institutional shareholders to our share register through this oversubscribed institutional placing, and we are delighted by the support from our existing shareholders in the PrimaryBid offer. The fundraising will enable the company to capitalise on the positive momentum which it entered 2020 by utilising the proceeds of the fundraise to develop the Company’s existing projects and strengthen its balance sheet”, said EQTEC chief executive David Palumbo.

Shares in EQTEC were 25.8% lower at 0.5p in early afternoon trading on Thursday.

–Adds fundraising results and updates share price–