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LONDON (Alliance News) - Shares in PowerHouse Energy Group dropped on Friday as the company pushed back its expectations for when its first commercial facility will be operational due to financing and acquisition delays.
Shares in the hydrogen production company were down 16% at 0.33 pence on Friday.
Due to lead time delays in material acquisition and financing, PowerHouse said that it is unlikely that the first commercial facility will be operational by the end of 2018.
Financing delays were caused by the majority of funds raised by the company having to go towards the repayment of the Hillgrove loan note, which impeded the speed of PowerHouse's commercial engineering activities.
In February 2017, PowerHouse issued 312.5 million shares at 0.8 pence each with the proceeds largely going to the repayment of a loan note held by Hillgrove Investments.
In addition to the GBP2.0 million cash pay-out, Hillgrove converted GBP1.4 million of the outstanding loan into shares. The conversion and pay-out had effectively eliminated the note which was accruing interest at a 15% rate, along with the debt held over the company's assets.
Powerhouse said it is currently focusing on site-specific financing packages as well as permission for market-led applications, and estimates the building and commissioning of its first distributed modular gasification system to take 12 months.
The revised view of the group is that commercial operation of the first facility will start within the second half of 2019.
"We look forward to positive progress during the rest of the year and beyond as the commercialisation strategy for our proprietary DMG technology platform targets revenues to move PowerHouse towards becoming a profitable and sustainable business meeting the ever growing global needs for efficient elimination of plastic waste and end of use tyres and the production of clean energy," PowerHouse said in a statement.
