Home » MetalNRG (MNRG) » MetalNRG #MNRG – Update on Company’s EQTEC Italia Investment & Issue of Convertible Loan Notes

MetalNRG #MNRG – Update on Company’s EQTEC Italia Investment & Issue of Convertible Loan Notes

Following the trading update released to market by EQTEC plc (AIM: EQT) on 1 February 2022, the Company is pleased to provide an update on progress made at its investment project in Italy.

In October, EQTEC’s work with partners on the recommissioning of EQTEC Italia MDC SRL in Tuscany, Italy (“Italia MDC”) progressed with the site fully cleaned and relevant components disassembled and cleared.

In December, EQTEC Italia ordered core technology components and all deliveries were made on schedule. The 1MWe plant will convert multiple types of biomass feedstock into heat, power and/or fuel for local businesses and residents.

Once operational, Italia MDC is expected to generate annual plant revenues of c. 2,000,000, with plant EBITDA of c. 750,000.

The Company currently owns 26.6% of Italia MDC. In January 2022, Company Directors visited the site with fellow shareholders and reviewed progress with local construction partner COS.M.I. SRL.

The meeting also addressed the potential for further commercial opportunities for the plant, including production of high-quality biochar and construction of additional infrastructure to accommodate higher-margin feedstock and further offtake alternatives.

EQTEC is undertaking feasibility assessments now and expects to complete them in Q1 2022.

MetalNRG Chief Executive, Rolf Gerritsen, commented “Good progress is being made toward recommissioning the Italia MDC plant in 2022 and we look forward to our ongoing working relationship with EQTEC. The partnership is a solid development opportunity and investment, allowing us to support the social, environmental and economic improvements that a sustainable approach to waste-to-energy can have.”

Separately, MetalNRG (LON:MNRG) today announces that it has agreed to issue up to £200,000 of Convertible Loan Notes (“CLN”) to Global Investment Strategy UK Limited (“GIS”).

The CLN carry the following conditions; the CLN are fixed rate, unsecured loan notes carrying a simple, non-compounding interest rate of 10% per annum (accruing on a daily basis).

The CLN are repayable, if not previously converted, on the applicable maturity date. The maturity date will be , either:

(a) the date falling 6 months after the date of execution of the CLN instrument or

(b) the date of the first material equity fund raising by the Company following the date of execution of the CLN instrument.

Holders of the CLN may convert the principal and interest into new ordinary shares in the capital of MetalNRG (“New Shares”) at a price equal to a 20% discount to the average price at which New Shares are issued by MetalNRG.

The CLN instrument contains customary events of default and should an event of default occur, the conversion price will be equal to the nominal value of MetalNRG ordinary shares.  

Conversion of the CLN is subject to the Company maintaining sufficient headroom within the Company’s share authorities or, if required, the Company filing a secondary prospectus which will enable the admission to listing and trading of the further New Shares to be issued on conversion.  

A copy of the CLN Instrument will be posted on the Company’s web site.



Contact details:

Rolf Gerritsen

Christopher Latilla-Campbell


+44 (0) 20 7796 9060

Corporate Broker
Lucy Williams

Duncan Vasey

+44 (0) 20 7469 0930

Corporate Broker
Nick Emerson

+44 (0) 1483 413500


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