PowerHouse set to acquire development partner Waste2Tricity

The AIM-traded firm said it had entered into a heads of terms, with a view to finalising a formal sale and purchase agreement in the first quarter of 2020.

It said the acquisition would be in the form of a non-cash transaction using PowerHouse shares to acquire the whole of the issued share capital of W2T, at a ratio of 60% PowerHouse to 40% W2T, with 87.5% of the Powerhouse shares issued in exchange for W2T shares being locked into a no-sale agreement for a minimum of one year, and orderly market arrangements for a further year.

The agreement would be subject to shareholder and regulatory approval.

“The directors of PowerHouse believe that the post-acquisition enlarged company will be better understood by its customers and investors, with rights to markets and developments in-house, and will be able to present a clear and unambiguous message about its innovative British technology which provides a solution to the increasing problem of [non recyclable] waste plastic,” the board said in its statement.

“These negotiations are progressing well and are now subject to final documentation.

“A further announcement will be made in due course as appropriate.”

At 1411 GMT, shares in PowerHouse Energy Group were down 6.53% at 0.46p.