LONDON: PowerHouse Energy Group, the UK technology company pioneering hydrogen production from waste plastic, is in advanced negotiations to acquire its development partner Waste2Tricity Limited (W2T).
The Company has entered into a heads of terms with a view to finalising a formal sale and purchase agreement in Q1 2020.
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 a year, and orderly market arrangements for a further year. The agreement will 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 unrecyclable waste plastic.