PowerHouse appoints energy entrepreneur Dr Cameron Davies as Chairman and completes £1.6 million raise to fund commercial development.
PowerHouse Energy Group plc (AIM: PHE), the company focused on ultra high temperature gasification, waste-to-hydrogen, waste-to-energy, and the creator of Distributed Modular Gasification (DMG)©, is pleased to announce the appointment of Dr Cameron Davies as Non-Executive Chairman of the Company and the successful completion of an oversubscribed £1.6 million placing and direct subscription to finance the next phases of engineering and commercial development activities. Keith Allaun, currently Executive Chairman, will transition to CEO to lead the commercial development of the business, and will remain a member of the Board of Directors. It is expected that the transition will occur upon Dr Davies joining the Company on or about 1 October 2017.
Dr Davies is a capable business leader who has successfully grown revenues and profits in a quoted alternative energy company. As founder, CEO, and Executive Director of AIM-quoted Alkane Energy plc (now Alkane Energy Limited), he led that company through each phase of its development. He built Alkane from its initial concept to the point of providing over 160MW of connected power generation, and a successful exit for his shareholders – a c. £60 million sale to Balfour Beatty Infrastructure Partners in October 2015. Prior to Alkane Dr Davies led a number of other start-up companies and is currently a Non-executive Director of AIM-quoted Ascent Resources plc.
Dr Davies was awarded a PhD in Applied Geochemistry from Imperial College London. Over the course of the past 20 years Dr Davies has evaluated numerous gasification technologies and projects. He is also a Fellow of the Geological Society of London a member of the European Petroleum Negotiators Group, and the Petroleum Exploration Society of Great Britain.
Keith Allaun said: “Over the past 6 months, we conducted an extensive search to ensure that we identified the best possible candidate for the Chairman role. Dr Davies’ background in gasification, his extensive entrepreneurial and public company experience, and his passion for the vision of PowerHouse made him the ideal match at this point in our development. His considerable achievements, both technical and commercial, should inspire the confidence of our Shareholders and partners in the direction the Company is taking. Cameron’s extensive contacts throughout industry and government, both in the UK and internationally, will be of great value to the Company as we begin to accelerate our commercial strategy.”
Dr Davies said: “I am pleased and excited to be joining PowerHouse at this crucial juncture. I’ve been following the Company with keen interest for over a year and am impressed by the progress that Keith and his team have made in positioning the Company for its next phase of growth. PowerHouse is well advanced in its plan to produce low-cost hydrogen for road-fuel use while addressing the growing issues of landfill diversion and waste eradication. I am looking forward to helping the Company accelerate its commercial strategy, develop the business operationally, and expand an already excellent team.”
PowerHouse also announces it has completed a fundraising of £1.6 million, through the issue of 160,000,000 new Ordinary Shares of 0.5p per share (“Shares”). The fundraise was completed at a price of 1p per Share representing an 18% discount to the closing price at 21 August. The placement price was a greater than 20% premium over the Company’s last placement in February 2017. The proceeds of the fundraising will be used primarily to accelerate the engineering of the commercial platform for Distributed Modular Gasification. Additionally, the proceeds will help fund expansion of the team and continued research and testing of the processes.
Mr. Allaun added: “The previous £2.5 million placing announced on 15 February of this year was largely to eliminate the long-standing convertible loan note, with £2 million of those proceeds used for that purpose. This placement is wholly dedicated to the funding of our accelerating growth.”
The fundraising has been managed by Turner Pope, Joint Broker.
Application has been made to the London Stock Exchange for admission of the 160,000,000 new Shares to trading on AIM (“Admission”). It is expected that Admission will take place on or around 30 August 2017 and that dealings in the new Ordinary Shares on AIM will commence at the same time. The new Ordinary Shares rank pari passu in all respects with the existing Ordinary Shares in issue.
On Admission, the Company’s issued share capital will consist of 1,123,608,856 Ordinary Shares. PowerHouse has no shares in Treasury, therefore this figure may be used by Shareholders, from Admission, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.
The additional funds raised in the placing will contribute to the operating capital of the Company.
The following information is disclosed in accordance with Schedule 2 paragraph (G) of the AIM Rules for Companies:
Dr William Cameron Davies, aged 74, has been a director or partner of the following companies during the five years preceding the date of this announcement:
|Current||Within the past 5 years|
|Ascent Resources PLC||Alkane Energy Limited (formerly Alkane Energy plc)|
|Cameron Energy Advisors Limited|
|Association of Coal Mine Methane Operators (ACMMO)|
For more information, contact:
PowerHouse Energy Group plc
|Keith Allaun, Executive Chairman||Tel: +44 (0) 203 368 6399|
|WH Ireland Limited (Nominated Adviser)|
|James Joyce / James Bavister||Tel: +44 (0) 207 220 1666|
|Turner Pope Investments Ltd (Joint Broker)|
|Ben Turner / James Pope||Tel: +44 (0) 203 621 4120|
|Smaller Company Capital Limited (Joint Broker)|
|Jeremy Woodgate||Tel: +44 (0) 203 651 2910|
|Allerton Communications (Media Relations)|
|Peter Curtain||Tel: +44 (0) 203 137 2500|