Equipmake to hold general meeting for Caterpillar deal

LONDON - Equipmake Holdings PLC, a company specializing in electrification technologies, has announced a general meeting to be held at their Snetterton office on May 12, 2025. The meeting is a key step in securing a strategic investment from Caterpillar Inc (NYSE:CAT)., which has agreed to invest £5 million through Convertible Loan Notes (CLNs).

On March 31, 2025, Equipmake entered into a master development agreement (MDA) with Caterpillar, marking a significant partnership aimed at developing electric drivetrain products. This alliance is expected to enhance Equipmake’s financial stability and facilitate the expansion of its electrification products amidst a global shift towards electric vehicles.

The upcoming general meeting will propose resolutions enabling Equipmake’s directors to issue new ordinary shares if Caterpillar opts to convert its CLNs. The conversion price is set at a maximum of roughly 3.125p per share, with the potential for Caterpillar to acquire approximately 12.5% to 29.2% of Equipmake, depending on the company’s share price at the time of conversion.

Since the partnership announcement, Equipmake has secured orders totaling over £1 million from Gilmour Space Technologies and CorPower Ocean, signaling positive market response to the company’s growth trajectory.

The resolutions, if passed, will authorize the issuance of up to 1,121,000,000 ordinary shares, potentially giving Caterpillar up to a 50% stake in Equipmake, subject to share price conditions and conversion decisions. However, a mandatory bid for the remaining shares would be triggered if Caterpillar’s stake reaches 30% or more, as per the Takeover Code.

Equipmake’s board has unanimously recommended that shareholders vote in favor of the resolutions, emphasizing the importance of Caterpillar’s investment for the company’s future. Failure to pass the resolutions could jeopardize the strategic partnership and the company’s ability to continue as a going concern, given the financial difficulties disclosed on December 6, 2024.

The terms of the CLNs include a 4-year term with 10% annual interest, a conversion option on maturity or earlier fundraising, and provisions for a change of control event. The investment is intended to provide working capital and support ongoing development in line with the MDA conditions.

This news is based on a press release statement from Equipmake Holdings PLC.

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