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LONDON (Alliance News) - PowerHouse Energy Group PLC on Thursday said it will issue Renewme Ltd 90.9 million shares in settlement of a liability.
In March, PowerHouse and Renewme entered into a settlement agreement, but that agreement was not completed because a sum of EUR211,000 remained payable by PowerHouse to RenewMe.
On Thursday, PowerHouse said it will issue Renewme with 90.9 million shares in settlement of this, with amounts to 16% of PowerHouse's issued share capital. PowerHouse said the settlement will not result in a change to its cash position, which remains positive.
In addition, PowerHouse said it has entered into an agreement with Hillgrove Investments Pty Ltd allowing it to extend the repayment dates for loans and debt due to Hillgrove. The loans and debt amount to GBP3 million and are due to be repaid at the earliest 12 months after the publication of PowerHouse's financial statements for 2015.
Elsewhere, PowerHouse said the final testing for the PHE G3 UHt system continues, but that the engineering team has identified a significant opportunity to increase the efficiency of the gasification reactor and is making modifications to the design before final testing can be completed.
"I recognise that we have not achieved the milestones we had anticipated by this date. However, one must keep in mind that we have designed, engineered, and built the entire G3-UHt system from first principles in less than one year. The fact that our team has been able to make such an improvement to the process, incorporate the latest breakthroughs in materials science, improve the overall system efficiency, and be on the cusp of delivering a commercial technology, gives us great satisfaction," Executive Chairman Keith Allaun said.
Shares in PowerHouse are currently suspended following the resignation of its nominated adviser Allenby Capital Ltd earlier this month. Shares will be issued to Renewme once trading has resumed.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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