TPI provides its latest research note on PowerHouse Energy Group Plc (PHE.L).

Powerhouse has confirmed its raising of £5.0m (gross) by way of an oversubscribed placing (‘the Placing’) and subscription of new ordinary shares at 2.5p each in a transaction arranged by Turner Pope Investments.

Significantly, Peel Holdings (IOM) limited (‘Peel’), took up 40m subscription shares. The Company’s largest investor, the White family, also participated in the Placing sufficient to ensure their 26% holding in the Company was retained, with the balance being taken up by one institutional investor and a small number of private shareholders.

Powerhouse’s Board consider the funds now raised, in addition to the £0.5m exclusivity payment expected shortly from Peel L&P Environmental, will provide the necessary cashflow for the Company to reach profitability and to implement its wider strategy for international growth.

Powerhouse Energy (PHE.L) A Fundamental Inflection Point

The Company in addition has granted a warrant to Peel, providing a conditional right to subscribe up to c.£10.2 million for up to 10% of the Company at a 10% premium to the Placing Price, upon the exercising of which it is expected to become a cornerstone investor in the Company.

Powerhouse’s Board considers that the investment by Peel and the institutional investor that took part, provide further endorsement of its pioneering hydrogen production from waste plastic DMG® technology, and enhances Powerhouse’s credibility for advancing its development strategy both in and outside of the UK.

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We would draw your attention to the various disclaimers in the document both at the beginning and at the end of the note. Retail clients (as defined by the rules of the FCA) must not rely on the research document. In particular you should note that the research document is a non-independent marketing communication. The analyst who has prepared the research is aware that TPI provides research to PowerHouse Energy Group Plc. Accordingly the research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibitions on dealing ahead of its dissemination.

The information in the document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The material contained in the document is general information intended for recipients who understand the risks associated with equity investment in smaller companies. It does not constitute a personal recommendation as defined by the FCA or take into account the particular investment objectives, financial situation or needs of individual investors nor provide any indication as to whether an investment, a course of action or the associated risks are suitable for the recipient.

Copyright © 2019 Turner Pope Investments (TPI) Limited, all rights reserved.


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