PHE Powerhouse Energy Group Plc

 
TIDMPHE 
 
Powerhouse Energy Group plc 
 
                    Strategic Placing to raise £10 million 
 
Powerhouse Energy Group plc (AIM: PHE) ("Powerhouse" or the "Company"), the 
sustainable hydrogen company pioneering hydrogen production from waste plastic, 
is pleased to announce it has raised ��10 million, before 
expenses, by way of a Placing at 5.5p per share ("Issue Price") (the "Placing" 
or "Fundraising"). The Placing was arranged by Turner Pope Investments Ltd 
(TPI) and was oversubscribed. 
 
The Directors have undertaken the Fundraising to provide funds that they 
believe will expedite signifcantly financial close of the funding of the first 
commercial scale DMG installation utilising the Company's technology, which is 
targetted to be reached during the first quarter of 2021. The Directors' view 
is that completion of this first reference site will be extremely commercially 
and strategically important to the Company, not least as a springboard for 
overseas sales and marketing. 
 
A total of 181,818,182 new Ordinary Shares of 0.5p in the capital of the 
Company ("Ordinary Shares") have been placed at the Issue Price ("Placing 
Shares") with an institutional investor and a small number of Turner Pope's 
private clients, as well as the White Family (the Company's largest 
shareholder), raising £10 million, before expenses. 
 
Related Party Transaction 
 
 
The White Family is a long-term supporter of the Company and is investing 
approximately £2.6 million in the Fundraising. The participation by the White 
Family is considered a related party transaction under the AIM rules as the 
White Family (constituting Howard White, Ben White, Josh White and Serena Eden 
Reyes-White) currently holds 26.05% percent of the share capital. Following the 
Fundraising, the White Family will hold 1,015,045,935 Ordinary Shares 
representing 26.05% held by the individual White Family members as follows: 
 
Josh White - 377,746,610 Ordinary Shares 
 
Ben White - 247,775,210 Ordinary Shares 
 
Serena White-Reyes - 211,459,086 Ordinary Shares 
 
Howard White - 178,065,029 Ordinary Shares 
 
The Directors of the Company, having consulted with WH Ireland, the Company's 
Nominated Adviser, consider the terms of this transaction to be fair and 
reasonable insofar as shareholders are concerned. 
 
Use of funds 
 
The Company will use the net funds from the Fundraising to advance the project 
procurement and delivery of long lead items before the formal financial close 
of the first commercial scale DMG installation , thereby protecting the 
targeted timeline for the Company, and advancing the completion of the 
Company's DMG technology. This will allow the Company to complete negotiations 
rapidly for the Special Project Vehicle ("SPV") to be established to deliver 
the Protos plant. Powerhouse will apply the net funds from the Fundraising to 
invest alongside Peel NRE Environmental Limited. By providing investment for 
this SPV, the Company believes that financial close will be significantly 
expedited. 
 
This investment in the Protos SPV will give the Company access to extra revenue 
via participation at project level on the first commercial deployment, rather 
than simply as licensor of the DMG technology, and will allow Powerhouse to 
significantly advance its overall business plan. Importantly, commissioning the 
first commercial unit will provide a reference site for potential overseas 
customers and partners. It will also provide the Company with greater 
beneficial technical exposure in the project delivery phase. 
 
The Directors consider that these steps are beneficial for the Company's future 
and are likely to bring forward the date on which licence fee income, which is 
expected to constitute the principal portion of the Company's future revenue, 
will start to be received. 
 
Commenting, Tim Yeo, Executive Chairman of Powerhouse, said: 
 
"This is a very exciting step forward and a great start to 2021. It 
demonstrates how our Company is getting down to business. In addition the 
Warrant granted to Peel Holdings (IoM) Limited on 9 September 2020 ("Peel 
Warrant") is exercisable for a period of six months from the date when 
financial close is reached on Protos. 
 
"The exercise of the Peel Warrant would bring a further £10.2 million of cash 
into Powerhouse. Together with the proceeds of this Fundraising, the exercise 
of the Peel Warrant would place our Company on a very secure financial footing 
and facilitate the deployment of our technology internationally, helping to 
accelerate a clean energy transition and provide a solution to non-recylable 
plastic." 
 
David Ryan, CEO of Powerhouse, said: 
 
"My overriding priority is to bring Powerhouse's first project to operation 
soonest. The completed plant would enable future customers worldwide to see the 
DMG technology delivering the reality of waste plastic regenerated to hydrogen, 
realising the predicted technology environmental and commercial benefits. This 
investment will allow Powerhouse and Peel to deliver this reality sooner and I 
consider it as an obvious step for the Company to make in these challenging 
times." 
 
Admission to trading on AIM 
 
Further to the Fundraising, the Company is issuing 181,818,182 Ordinary 
Shares. Application will be made for the admission of 181,818,182 Ordinary 
Shares to trading on AIM ("Admission") and it is expected that this will occur 
on or around 21 January 2021. These shares will rank pari passu in all respects 
with the Company's existing issued Ordinary Shares. 
 
Subsequent to the issue of Ordinary Shares, the Company will have 3,896,918,875 
Ordinary Shares in issue with voting rights. Powerhouse has no shares in 
Treasury, therefore 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 in their interest in, the 
share capital of the Company under the FCA's Disclosure and Transparency Rules. 
 
Broker Warrants 
 
TPI has been issued with 9,090,910 warrants to subscribe for new Ordinary 
Shares at the Issue Price, exercisable for a period of three years from 
Admission. 
 
ENDS 
 
For more information, contact: 
 
Powerhouse Energy Group plc        Tel: +44 (0) 203 368 6399 
 
Tim Yeo, Executive Chairman 
 
WH Ireland Limited (Nominated      Tel: +44 (0) 207 220 1666 
Adviser) 
 
James Joyce/ Lydia Zychowska 
 
Turner Pope Investments Ltd (Joint Tel: +44 (0) 203 657 0050 
Broker) 
 
Andrew Thacker 
 
SisterSmith PR (media enquiries)   Mob: +44 (0) 7766522305 
Becca Smith 
 
Notes for editors: 
 
About Powerhouse Energy Group plc 
 
Powerhouse, the sustainable hydrogen company, has developed a proprietary 
process technology - Distributed Modular Generation (DMG®) - which can utilise 
waste plastic, end-of-life-tyres, and other waste streams to efficiently and 
economically convert them into syngas from which valuable products such as 
chemical precursors, hydrogen, electricity and other industrial products may be 
derived. Powerhouse's technology is one of the world's first proven, 
distributed, modular, hydrogen from waste (HfW) process. 
 
The Powerhouse DMG® process can generate up to 2 tonnes of road-fuel quality 
hydrogen and more than 58MWh of exportable electricity per day. 
 
Powerhouse's process produces low levels of safe residues and requires a small 
operating footprint, making it suitable for deployment at enterprise and 
community level. As announced on 11th February 2020 under its Supplemental 
Agreement with Peel Environmental, Powerhouse will receive an annual license 
fee of GBP500,000 in respect of each project which is commissioned. 
 
Powerhouse is quoted on the London Stock Exchange's AIM Market under the 
ticker: PHE and is incorporated in the United Kingdom. 
 
 For more information see www.powerhouseenergy.net 
 
 
 
END 
 
 

(END) Dow Jones Newswires

January 14, 2021 02:01 ET (07:01 GMT)

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