“Expand our horizons dramatically”, “Boots on the ground”, “Very confident in the future” are just some of the phrases Keith Allaun, Executive Chairman for PowerHouse Energy Group Plc (LON:PHE) used when he caught up exclusively with DirectorsTalk to discuss a £2.5 million fund raise announced this morning. Keith explains what the funds will be used for, Hillgrove’s support, other investors and what we should expect from the company over the coming weeks and months.
PowerHouse Energy Group Plc announced this morning that it has completed a fund-raising of £2.5 million, through the issue of 312,500,000 new Ordinary Shares of 0.5p per share (“Shares”). The placing was completed at a price of 0.8p per Share. The proceeds of the fundraising will go largely to repay the loan note not otherwise converted signed between the Company and Hillgrove in October 2012 (the “Hillgrove Note”).
The terms of the Hillgrove Note were such that the Company was accruing 15% interest against the loan. Hillgrove had extended a total of £3,402,155 to the Company, including accrued interest, and has accepted a £2 million cash pay-out, and conversion of the remaining £1,402,155 into newly issued share capital of the Company at the previously agreed 0.5p conversion price, amounting to 280,430,920 shares. Hillgrove now holds a total of 300,430,920 shares of the enlarged issued share capital of the Company. Hillgrove has committed to a 12 month lock-in period for its newly issued shares. Hillgrove is a related party as defined by the Aim Rules for Companies and accordingly the Hillgrove Note payout and share conversion is deemed a Related Party Transaction.