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19 Jun 2012 07:00
19 June 2012
PowerHouse Energy Group plc
(the "Company" or "PowerHouse")
Issue of $250,000 Convertible Loan Note and Board changes
The Company announces that it has entered into a convertible loan agreement with Linc Energy Limited ("Linc") under which Linc has agreed to advance $250,000 to the Company. The loan is unsecured, repayable on 18 June 2014 and carries interest of 15 per cent. per annum. Linc has the option at any time to convert the loan in part or whole at a conversion price of 1p per share.
The Company intends to utilise the proceeds of the loan to finance working capital generally. The new Board intends to evaluate the opportunities for the future of the Company, including the restructuring of the Group's operations. Accordingly, the suspension of trading in the Company's shares on the AIM market will remain in place until the Directors are able to clarify the Company's financial position and confirm that the Company has sufficient working capital to enable it to continue to trade.
Under the AIM Rules, Linc and its associates are treated as a related party to the Company. The Directors, having consulted with Merchant Securities Limited, consider that the terms of the Convertible Loan Agreement are fair and reasonable insofar as the shareholders of the Company are concerned.
The Company also announces the appointment of Keith Allaun as Executive Chairman and the resignation of Ross Lyndon James and Mark Johnston, formerly Executive Chairman and Finance Director respectively, with immediate effect.
Mr Allaun is a management consultant with over 25 years' experience in the Internet, Technology, Biotech, Manufacturing, Energy, and Venture Capital sectors. His clients have included Linc Energy and several multinational companies. In addition to his management consulting, Mr. Allaun has had several years of experience working for and with early stage venture capital funds.
Robert Keith Allaun, aged 52 and a US citizen, is currently a director of Critical Point Solutions Inc. and in the last five years has also been a member of Wealth Works, LLC. Mr Allaun has confirmed that there is no additional information under Schedule 2, paragraph (g) of the AIM Rules which needs to be disclosed.
A further announcement will be made in due course.
For additional information please contact:
PowerHouse Energy Group plc
Keith Allaun+44 (0) 20 7079 4402
Merchant Securities Limited (NOMAD and Broker)
David Worlidge/Simon Clements
+44 (0) 20 7628 2200
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