3rd Mar 2014 12:59
LONDON (Alliance News) - PowerHouse Energy Group PLC Monday said it has settled its liabilities with RenewMe Ltd, regaining complete control of its Pyromex licences worldwide.
The alternative energy technology company said it has entered an agreement with RenewMe to pay it EUR211,000 in cash and issue RenewMe 18.3 million shares, or 5% of PowerHouse, in order to fully settle amounts due by the PowerHouse to RenewMe.
Powerhouse shares were up 20% to 3.75 pence Monday afternoon, making the share issue to RenewMe worth GBP686,250.
PowerHouse was unable to meet certain payments to RenewMe in June 2012 and June 2013 after both PowerHouse and Pyromex Holding AG entered into an agreement to pay RenewMe EUR200,000 per year for five years beginning June 2011, resulting in PowerHouse posting a EUR800,000 liability in its accounts for the full year 2012.
Under the terms of the new agreement, RenewMe has relinquished its exclusive licences to use the Pyromex waste-to-energy system in the UK, Ireland, India, Scandinavia and the Benelux countries to PowerHouse.
"This settlement agreement returns those licenses to Pyromex and gives us worldwide control of the application, delivery and operation of our ultra-high temperature gasification technology," PowerHouse Executive Chairman Keith Allaun said in a statement. "These 10 valuable country licenses that we have now recovered expands our potential customer base tremendously."
By Tom McIvor; [email protected]; @TomMcIvor1
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