24th Feb 2014 12:53
LONDON (Alliance News) - PowerHouse Energy Group PLC Monday said it has entered into a debenture with Hillgrove Investments Pty Ltd to provide security for the amounts it owes Hillgrove, a move requested after PowerHouse bought Pyromex in a transformational deal.
PowerHouse owes Hillgrove about GBP1.4 million after the two companies signed a convertible loan deal in late 2012. Under the debenture deal, gasification technology company Powerhouse has granted Hillgrove a fixed and floating charge over all its property and assets as security for the loan.
In a statement, PowerHouse said Hillgrove had assured it that it would be willing to make further advances under the loan agreement so that Powerhouse can keep on trading, but had asked for a security for its loans after Powerhouse's acquisition of Pyromex AG fell as a material change under the loan deal.
PowerHouse said last August it was integrating the remaining 70% of Pyromex not already held by the company into its operations so it could speed the commercialisation of Pyromex's technology and start generating cash-flow early. It said it planned to sell the first Pyromex waste-to-energy units in the first quarter 2014.
"Hillgrove believes that Powerhouse potentially has a very bright and profitable future ahead of it, and is keen to see PowerHouse move forward into its next commercial phase of development whereby it is selling Pyromex gasification units to the market," a spokesperson for Hillgrove said in a statement.
PowerHouse shares were down 21.3% to 2.76 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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