2nd Apr 2014 11:06
LONDON (Alliance News) - PowerHouse Energy Group PLC Wednesday said it it agreed to issue new shares to cover amounts outstanding to some of its creditors, a move it hopes will allow it to move the company forward after a recent restructuring.
In a statement, the company said it had entered into a deed of settlement under which it will issue 11.5 million new shares to settle an outstanding loan of about GBP405,000 with Aspermont Ltd, Dilato Holdings Pty Ltd, and Tesla Nominees Pty Ltd 2011, as well as a USD100,000 deposit that PowerHouse Energy Australia Pty Ltd paid in a deal to buy a gasification system that wasn't then completed.
PowerHouse Energy Australia is owned by third parties.
PowerHouse Energy Group said its lenders had agreed not to sell any of the shares until after June 26.
The alternative energy technology company said it had also agreed to issue nearly 8 million new shares to certain creditors of its Pyromex AG subsidiary who are due GBP263,120.
It also issued 400,000 new shares to settle a legal dispute in the US.
"I'm pleased that we have resolved these matters that have faced the company since we began its
restructuring in June 2012. This positions us to complete the integration of Pyromex and PowerHouse without distraction and allows us to focus on the future, not on the challenges of the past," Chairman Keith Allaun said in a statement.
Last month the company settled its liabilities with RenewMe Ltd, regaining complete control of its Pyromex licences worldwide. In February, it 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 Energy shares were up 3% at 2.575 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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