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As to confusion.......If you go onto the W2T web site, it opens with the statement
The exclusive developer of the DMG System to turn unrecyclable plastic waste into Hydrogen Road Fuel or Electricity.
If anyone saw that and did not even basically understand the W2T/PHE set-up, they would immediately think it was W2T and not Powerhouse energy that are developing the PHE DMG.
I look forward to your analysis stokey12.
I will spend part of the Christmas and New Year break mulling this over. If I was a W2T shareholder who invested on the basis of the Pre IPO document I am not sure that I would be too pleased. I have concerns that may be allayed when I see the documentation to formalise the sale and purchase agreement.
Having put the kettle on, what has really angered me this morning is the lost opportunity to communicate a clear plan and message.
I hope we see two or three press releases today to address this. I really hope we see Howard and Dave being interviewed together on a podcast.
We need to see a cohesive message as part of a well-considered communication plan. Please guys, please tell me there is a defined strategy to release the news like this. Put your Santa hats on and say this is the best thing since we learned how to make hydrogen pop in a test tube in basic science class at school!
Unfortunate the deal wasn’t done after planning permission protos were granted. Ask yourself what price to be owner operator of the first site.
From a finance view everything under one roof makes better sense. W2T, was always viewed as a threat to Powerhouse from a takeover. W2T, could have created huge debt and then forced phe to sell.
Hi Rooky, I think this really will be a great thing for us in the years to come but damn they really have shot themselves in the foot with this news release! The amount of uncertainty and lack of clarity is unbelievable!
LongTerm74,
Fully agree that's why I have no idea if it will effect the sp or not.
The RNS is almost like a Bletchley Park code, you can read almost anything into it, without coming to a conclusion.
Clarity must surely follow, what this actually means for PHE and costs involved.
...
"The agreement will be subject to shareholder and regulatory approval."
OK, great. Start presenting information please.
"The directors of PowerHouse believe that the post-acquisition enlarged company will be better understood by its customers and investors, with rights to markets and developments in-house, and will be able to present a clear and unambiguous message about its innovative British technology which provides a solution to the increasing problem of unrecyclable waste plastic."
Yes absolutely. This is a great move. The two companies marketing differently were causing confusion and hurting the message. I've written about this before.
But, PHE press team, there are so many unanswered questions!
Who is going to be on the, presumably, extended new board? Who is going to be running the show? What is the new power dynamic? How are the board voting rights split up?
What are the finances and cash flow?
What contracts and contacts does W2T bring into PHE?
How does this impact the deal with Peel? Presumably they were privy to this?
The message and press release is terrible. You can see for yourself from the messages posted on this board in the last hour.
That said and assuming all the new chiefs can work well together, I think the greatly enhanced and strengthened team will be superb and will get DMG units out there a lot sooner.
As someone who holds a bit over 1% of PHE I'm utterly unimpressed by how the news has been released to the market. Fire your press team!
This opens a huge number of questions which are completely unanswered. How is the market supposed to calculate if this is a good or a bad deal? You ask us to take on a fairly sizeable share dilution to buy a loss making company but give no details on what it will actually do. I feel I personally understand the business relatively well and can have an educated guess as to what means for us but there is nothing in this, in recent RNS's or in other news releases which tells the market what is going on.
Good move, preumably the pricing is right, as this will allow PHE to push things further along instead of waiting for a partner to move,
Also, of course they can push their DMG ahead of competitors in the efw sector.
Not to sure if it will effect the sp much though, but it should.
PowerHouse Energy Group plc (AIM: PHE), the UK technology company pioneering hydrogen production from waste plastic, is pleased to announce that it is in advanced negotiations to aquire its development partner Waste2Tricity Limited (“W2T”).
The Company has entered into a heads of terms with a view to finalising a formal sale and purchase agreement in Q1 2020. The acquisition would be in the form of a non-cash transaction using PowerHouse shares to acquire the whole of the issued share capital of W2T, at a ratio of 60% PowerHouse to 40% W2T, with 87.5% of the Powerhouse shares issued in exchange for W2T shares being locked into a no-sale agreement for a minimum of a year, and orderly market arrangements for a further year. The agreement will be subject to shareholder and regulatory approval.
The directors of PowerHouse believe that the post-acquisition enlarged company will be better understood by its customers and investors, with rights to markets and developments in-house, and will be able to present a clear and unambiguous message about its innovative British technology which provides a solution to the increasing problem of unrecyclable waste plastic.
These negotiations are progressing well and are now subject to final documentation. A further announcement will be made in due course as appropriate.
RNS - Wow