Powerhouse's shares slide as it repays loan in cash and shares

Shares in Powerhouse Energy have plunged 25% as it repaid a £3.4m loan note balance to Hillgrove via a mix of funds raised in a capital hike and the conversion of debt to new shares.

It had completed a £2.5m placing of 312.5m new shares at 0.8p each.

Hillgrove has accepted a £2m cash pay-out, and conversion of the remaining £1.4m of the loan balance into new Powerhouse shares at a previously agreed 0.5p-a-share price.

Hillgrove, which had committed to a 12-month lock-in, now held a total of 300.4m shares in Powerhouse's enlarged share capital.

At about 10:32 GMT, shares in AIM-quoted Powerhouse were down 25% to 1.12p each.