Update on RenewMe and Suspension
6 April 2016
PowerHouse Energy Group plc
(“PowerHouse†or the “Companyâ€)
Update on RenewMe and Suspension
In a regulatory announcement released on 1 April 2016 by the Company, but drafted by its outgoing nominated adviser Allenby Capital Limited (“Allenbyâ€), it was stated that the Company had received “a claim†from RenewMe Limited (“RenewMeâ€). That statement, made by Allenby, was factually incorrect.
As announced on 3 March 2014, PowerHouse and RenewMe entered into a settlement agreement. That agreement was not completed because the sum of €211,000 remains payable under that agreement. The liability and the reasons for it were specifically noted in note 9 of the Company’s audited accounts for the year ended 31 December 2014 (as announced on 30 June 2015). The Company has had a number of amicable conversations with RenewMe about settling this liability. In February 2016 the Company and RenewMe had further, confidential discussions at which an, in principle, agreement was reached to settle the liability in new shares in the Company, at a no-cash cost to the Company. It is these negotiations that Allenby deemed fit to characterize as a claim, notwithstanding that (a) the liability had been disclosed in the Company’s audited accounts (as announced) (b) the confidential negotiations were ongoing, amicable, and not finalized and (c) no formal claim has been made and no legal proceedings having been issued.
The Directors are aware that the announcement made on 1 April 2016 has caused significant disquiet among shareholders. The Directors remain committed to finalising terms with RenewMe without the Company incurring a cash cost and to the appointment of a new Nominated Adviser, which they are actively pursuing. Shareholders should note that if within one month of the Company's suspension it has failed to appoint a replacement Nominated Adviser, the admission of the Company's securities will be cancelled from AIM.
The Company additionally announces that final testing has resumed on the G3-UHt System in Brisbane, Australia and a further announcement regarding the results will be forthcoming in the coming weeks.
For additional information please contact
| PowerHouse Energy Group plc | |
| Keith Allaun | +1 352 226 8644/ +1 352 359 0911 |
| Vicarage Capital Limited (Joint Broker | |
| Jeremy Woodgate | +44 (0) 20 3651 2910 |
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