Powerhouse Energy has raised £1m before expenses through a placing at a price of 0.5p per share.

The placing was arranged by the group’s broker, Turner Pope Investments (TPI), and a total of 200 million new ordinary shares of 0.5p each in the capital of the company has been placed at the issue price with clients of TPI.

Powerhouse Energy is based in the UK and develops technology that converts non-recyclable waste into low carbon energy.

The group’s directors have undertaken the fundraising to increase cash reserves following a revision of the company’s business model, and to cover a significant proportion of the build and fit-out costs for its new technology centre in Bridgend, Wales. This centre will become the company’s new head office.

As broker, TPI will receive eight million new ordinary shares as part of the placing, having elected to receive ordinary shares at the issue price instead of cash in respect of certain professional fees.

Acting CEO of Powerhouse Energy, Keith Riley, said: “This placing comes at an exciting time for Powerhouse Energy, as the company pursues its first commercial developments as a partner as opposed to a licensor. The net funds will be applied to general working capital, including ongoing works to deliver our new technology centre in Wales.”

An application will be made for the 200 million placing shares and eight million broker fee shares to be admitted to trading on the AIM market of the London Stock Exchange. Powerhouse Energy is currently anticipating that admission will become effective and that dealings in the Fundraising Shares will commence on the AIM on 1 September.

Furthermore, under the terms of the placing agreement, TPI will receive warrants to subscribe for 16 million new ordinary shares. These broker warrants are exercisable at the issue price for a period of three years from the date of admission and will not be admitted to trading on AIM or any other stock exchange.

Non-executive chairman of Powerhouse Energy, Tony Gardner-Hillman, added: “The ability to raise these funds demonstrates faith in the company’s progress and enables us to move forwards with the consolidation of our staff and technology into one location.

“Potential customers, and development and project funding partners, will be able to meet the team and see for themselves the proof of the Powerhouse concept. This is a milestone for the company.”

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