Debenture issued to Hillgrove Investments Pty Ltd
24 February 2014
PowerHouse Energy Group plc
("PowerHouse" or the "Company")
Debenture
PowerHouse announces that it has entered in to a debenture with Hillgrove
Investments Pty Ltd ("Hillgrove") to provide security for amounts due by the
Company to Hillgrove. The debenture grants Hillgrove a fixed and floating
charge over all property and assets of PowerHouse.
To date, Hillgrove has lent the Company approximately £1.43 million pursuant to
the convertible loan agreement dated 8 October 2012 ("Agreement"). Under the
terms of the Agreement, further sums may be requested by the Company but it is
at the option of Hillgrove whether the amounts are advanced to the Company.
Hillgrove has provided verbal assurances to the Company that it would be
willing to advance further sums of new money to PowerHouse to enable the
Company to continue to trade but, due to the material change of Powerhouse
purchasing Pyromex AG since the letter of financial support was provided by
Hillgrove on 28 June 2013 and the turnaround of that business, Hillgrove has
requested that security be granted to it, in the form of a debenture giving
Hillgrove fixed and floating charges over the assets of PowerHouse.
The granting of a debenture to Hillgrove is a related party transaction under
the AIM Rules for Companies and, having consulted with the Company's nominated
adviser, the independent directors (all directors except Keith Allaun who is
not considered independent as he was appointed by the original lender) are of
the opinion that the terms of the debenture are fair and reasonable in so far
as the shareholders of the Company are concerned and that the Company should
gain significant commercial benefits by entering into it.
A spokesperson for Hillgrove stated: "Hillgrove believes that Powerhouse
potentially has a very bright and profitable future ahead of it, and is keen to
see PowerHouse move forward into its next commercial phase of development
whereby it is selling Pyromex gasification units to the market."
For additional information please contact:
PowerHouse Energy Group plc
Keith Allaun - Executive Chairman
Phone: +44 (0)20 7079 4407
Email: inquire@powerhousegroup.co.uk
Sanlam Securities UK Limited (NOMAD and Broker)
David Worlidge/Simon Clements
+44 (0) 20 7628 2200
About PowerHouse Energy Group plc
PowerHouse Energy Group plc is an alternative energy company specialising in
the sale of waste to energy systems. PowerHouse's key advantages centre on its
implementation of proprietary technology and a wealth of industry knowledge.
The Company's technologies enable energy recovery from municipal waste streams
that would otherwise be directed to landfills and incinerators; or from
renewable and alternative fuels such as biomass, lignite (brown coal), tires,
and plastics to create syngas for power generation or reformed into liquid
fuels for transportation. For more information, visit our website at
www.powerhouseenergy.net.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund