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LONDON (Alliance News) - PowerHouse Energy Group PLC said Wednesday an announcement released last Friday by PowerHouse, but drafted by its outgoing nominated adviser, Allenby Capital Ltd, was "factually incorrect".
Allenby resigned as the company's nominated adviser and joint broker last Friday, resulting in PowerHouse Energy's shares being suspended from trading on AIM. A statement released by the company at that time said PowerHouse Energy had received "a claim" from RenewMe Ltd. However on Monday PowerHouse Energy said the statement, which it claims was made by Allenby, was incorrect.
PowerHouse and RenewMe entered into a settlement agreement in March, but that agreement was not completed because a sum of EUR211,000 remains payable by PowerHouse to RenewMe under the agreement, PowerHouse said.
PowerHouse said that it has had "a number of amicable conversations with RenewMe about settling this liability". In February the companies had further "confidential discussions", at which it agreed in principle to settle the liability in new shares in PowerHouse at a no-cash cost to the company.
The company said it is these negotiations that Allenby "deemed fit to characterize as a claim", notwithstanding that the liability had been disclosed in its audited accounts, that the confidential negotiations were ongoing, and that no formal claim had been made and no legal proceeds had 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," PowerHouse said in a statement.
PowerHouse noted that its trading will be cancelled from AIM if it has failed to appoint a replacement nomad within one month under AIM rules.
Elsewhere, the company said that final testing has resumed on the G3-UHt System in Brisbane, Australia, and it will make further announcement regarding the results of testing in the coming weeks.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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