REG - Powerhouse Energy Gp - Placing to raise £1,000,000 and issue of equity

Powerhouse EnergyAnnouncement

22/08/2023 07:00

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RNS Number : 9938J  Powerhouse Energy Group PLC  22 August 2023

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ANNOUNCEMENT.

 

22 August 2023

Powerhouse Energy Group Plc

(the "Company" or "PHE")

Placing to raise £1,000,000 and issue of equity

 

Powerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated
technology that converts non-recyclable waste into low carbon energy, is
pleased to announce that it has raised £1 million, before expenses, through a
placing at a price of 0.5p per share ("Issue Price") (the "Placing" or
"Fundraising"). The Placing was arranged by the Company's broker, Turner Pope
Investments (TPI) Ltd ("TPI").

A total of 200,000,000 new Ordinary Shares of 0.5p each in the capital of the
Company ("Ordinary Shares") has been placed by TPI at the Issue Price
("Placing Shares") with clients of TPI.

 

Use of Funds

 

The Directors have undertaken the Fundraising to increase the Company's cash
reserves following a revision of the business model and to cover a significant
proportion of the build and fit-out costs for the Company's new Technology
Centre in Bridgend. The Technology Centre will become the Company's new head
office as well as housing a scale version of the Company's new  feedstock
testing unit utilising the Company's proprietary DMG® technology, which will
serve as a reference site for potential customers, and for development and
project funding partners.

 

Broker Fee Shares

 

TPI will receive 8,000,000 new Ordinary Shares ("Broker Fee Shares"), having
elected to receive Ordinary Shares at the Issue Price instead of cash in
respect of certain professional fees.

 

Placing Agreement and issue of warrants

 

The Company and TPI have entered into a Placing Agreement pursuant to which
TPI has agreed, subject to certain conditions, to use its reasonable
endeavours to procure subscribers for the Placing Shares at the Issue Price.
The Company has given customary warranties and undertakings to TPI in relation
to, inter alia, its business and the performance of its obligations. In
addition, the Company has agreed to indemnify TPI in relation to certain
liabilities that TPI may incur in undertaking the Placing. TPI has the right
to terminate the Placing Agreement in certain circumstances prior to Admission
(as defined below) and, in particular, in the event that there has been, inter
alia, a material breach of any of the warranties. No part of the Fundraising
is being underwritten. The Placing is conditional upon Admission (as defined
below) taking place by no later than 8.00 a.m. on 1 September 2023 (or such
later date as TPI may agree in writing with the Company, being not later than
8.00 a.m. on 31 October 2023) and the Placing Agreement entered into between
TPI and the Company not being terminated prior to Admission.

Under the terms of the Placing Agreement, TPI will receive warrants to
subscribe for 16,000,000 new Ordinary Shares ("Broker Warrants"). The Broker
Warrants are exercisable at the Issue Price for a period of three years from
the date of Admission. The Broker Warrants will not be admitted to trading on
AIM or any other stock exchange.

 

Admission to AIM

 

Application will be made to London Stock Exchange plc for the 200,000,000
Placing Shares and 8,000,000 Broker Fee Shares to be admitted to trading on
the AIM market of the London Stock Exchange ("Admission"). It is currently
anticipated that Admission will become effective and that dealings in the
Fundraising Shares will commence on AIM at 8.00 a.m. on or around 1 September
2023.

 

Total voting rights

 

On Admission, the Company will have 4,165,414,135 ordinary shares of 0.5p each
in issue, each with one voting right. There are no shares held in treasury.
Therefore, the Company's total number of ordinary shares in issue and voting
rights will be 4,165,414,135 and this figure may be used by shareholders from
Admission as the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to their
interest in, the Company under the FCA's Disclosure Guidance and Transparency
Rules.

 

Keith Riley, Acting CEO of PHE, commented:

 

"This placing comes at an exciting time for PHE, as the Company pursues its
first commercial developments as a partner as opposed to a licensor. The net
funds will be applied to general working capital, including ongoing works to
deliver our new Technology Centre in Wales".

 

Tony Gardner-Hillman, Non-Executive Chairman of PHE, commented:

 

"The ability to raise these funds demonstrates faith in the Company's progress
and enables us to move forwards with the consolidation of our staff and
technology into one location. Potential customers, and development and project
funding partners, will be able to meet the team and see for themselves the
proof of the Powerhouse concept. This is a milestone for the Company."

 

For more information, contact:

 

 Powerhouse Energy Group plc                       powerhouse@tavistock.co.uk

 Keith Riley

 WH Ireland Limited (Nominated Adviser)            +44 (0) 207 220 1666

 James Joyce

 James Bavister

 Turner Pope Investments (TPI) Ltd (Joint Broker)  +44 (0) 203 657 0050

 Andrew Thacker

 James Pope

 Tavistock (Financial PR)                          powerhouse@tavistock.co.uk

 Simon Hudson

 Nick Elwes

 Heather Armstrong

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

About Powerhouse Energy Group plc

Powerhouse Energy has developed a process technology which can utilise waste
plastic, end-of-life-tyres, and other waste streams to convert them
efficiently and economically into syngas from which valuable products such as
chemical precursors, hydrogen, electricity, heat and other industrial products
may be derived.

 

Powerhouse Energy's process produces low levels of safe residues and requires
a small operating footprint, making it suitable for deployment at enterprise
and community level.

 

Powerhouse Energy is quoted on the London Stock Exchange's AIM Market under
the ticker: PHE and is incorporated in England and Wales.

 

For more information see www.powerhouseenergy.co.uk
(http://www.powerhouseenergy.co.uk)

 

END

 

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