Powerhouse Energy Group (LSE:PHE) will raise gross proceeds of £400,000 by placing 200m Placing Shares at 0.2p per share and is launching a conditional Retail Offer to raise up to £250,000 through the issue of up to 125m Retail Offer Shares at 0.2p per share.
The company says the net proceeds will be used, in priority order, to progress planning and permitting at Ballymena, develop a FEED package to allow tenders for EPCm and work towards FID, continue R&D on alternative DMG outputs and scale-up of the FTU process, and to bolster working capital including additional projects, sales and marketing and strengthening the C-suite.
The Placing is conditional on shareholder approval of a Capital Reorganisation that will subdivide each Existing Ordinary Share into one New Ordinary Share of 0.01p and one Deferred Share of 0.49p to facilitate future equity issues where the market price has recently traded at or below the prior nominal value.
If the Capital Reorganisation is approved and the Retail Offer is fully subscribed, the enlarged issued share capital will be 4.8bn new shares, the Placing will represent roughly 4.2% of the enlarged capital, the Retail Offer up to c.2.6% and the combined new issuance about c.6.8%.
Turner Pope Investments acted as sole placing agent, will be appointed joint broker with Longspur Capital, and will be issued up to 32.5m warrants exercisable at 0.2p and expiring three years from admission.
The board is also proposing to increase allotment and pre-emption disapplication authorities over 1.44bn new shares, representing about 30% of the Company's enlarged share capital, to give flexibility to raise further funds until the 2027 AGM.
Directors holding an aggregate 0.45% of the Existing shares intend to vote in favour of the resolutions and the General Meeting to approve the Capital Reorganisation and related resolutions is scheduled for 12.00 p.m. On 14 May, with admission of the new shares and Placing Shares expected at 8.00 a.m. On or roughly 18 May.
"These funds will enable us to continue to execute our strategy, progress our technology and help us bring our first project on stream, and we are pleased to include existing shareholders via the Retail Offer," Paul Emmitt, CEO.
