PowerHouse Energy Group plc (LON: PHE), the UK technology company pioneering hydrogen production from waste plastic, has today announced that it is in advanced negotiations to aquire its development partner Waste2Tricity Limited.
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 Energy Group 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.
These negotiations are progressing well and are now subject to final documentation. A further announcement will be made in due course as appropriate.