3 March 2014
PowerHouse Energy Group plc
("PowerHouse" or the "Company")
Agreement with RenewMe
*PowerHouse regains complete control of Pyromex Licenses
*Licenses returned for the UK, Ireland, India, Benelux and Scandinavia
*Potentially lucrative operational regions recovered by Company
On 3 June 2011 the Company, PowerHouse Energy Inc and Pyromex Holding AG
entered into a settlement agreement with RenewMe Limited, a company
incorporated in Cyprus ("RenewMe"), under which the parties agreed to change
the respective exclusive rights pertaining to the Pyromex technology and
PowerHouse Energy Inc agreed to pay RenewMe €200,000 per annum for five years,
commencing in June 2011 ("the 2011 Settlement Agreement"). Under the 2011
Settlement Agreement, the Company agreed to guarantee the obligations of
PowerHouse Energy Inc. The first payment was made in June 2011 but the second
and third payments due in June 2012 and June 2013 were not settled on the due
date. As PowerHouse Energy Inc was unable to meets its obligations, all
remaining amounts (€800,000) due under the 2011 Settlement Agreement were
recognised as a liability in the Company' accounts for the year ended 31
December 2012.
The Company is pleased to announce that it has entered into an agreement with
RenewMe under which the Company has agreed to pay RenewMe €211,000 in cash by
11 March 2014 and issue RenewMe with 18,331,996 new Ordinary Shares in the
Company ("Settlement Shares"), representing 5.00 per cent. of the issued share
capital of the Company as enlarged by the issue of shares, by 1 April 2014
("the 2014 Settlement Agreement"), in full and final settlement of amounts due
by the Company to RenewMe. Under the terms of the 2014 Settlement Agreement,
RenewMe has relinquished its exclusive licences to exploit the Pyromex
technology in the UK, Ireland, India, Scandinavia and the Benelux countries. In
addition, under the agreement all parties to the 2011 Settlement Agreement will
be released from their obligations thereunder (save for those which are
expressly stated to survive termination) on completion of the 2014 Settlement
Agreement. RenewMe has agreed that it will only dispose of the Settlement
Shares through its broker on the basis that an orderly market in the Ordinary
Shares is maintained.
Application will be made for 18,331,996 new Ordinary Shares to be admitted to
trading on AIM and dealings are expected to commence on 11 March 2014.
Keith Allaun, the Executive Chairman of PowerHouse, stated "I am delighted that
agreement has been reached with RenewMe and that a resolution has been obtained
for this significant liability of the Company to the benefit of our
shareholders. The greater benefit for the Company was the recovery of the
exclusive license that had been granted to RenewMe for the UK, Ireland,
Scandinavia, India, and the Benelux regions. This settlement agreement returns
those licenses to Pyromex and gives us worldwide control of the application,
delivery and operation of our Ultra-high temperature gasification technology.
These 10 valuable country licenses that we have now recovered expands our
potential customer base tremendously. "
For additional information please contact:
PowerHouse Energy Group plc
Keith Allaun - Executive Chairman
Phone: +44 (0)20 7079 4407
Email: inquire@powerhousegroup.co.uk
Sanlam Securities UK Limited (NOMAD and Broker)
David Worlidge/Simon Clements
+44 (0) 20 7628 2200
About PowerHouse Energy Group plc
PowerHouse Energy Group plc is an alternative energy company specialising in
the sale of waste to energy systems. PowerHouse's key advantages centre on its
implementation of proprietary technology and a wealth of industry knowledge.
The Company's technologies enable energy recovery from municipal waste streams
that would otherwise be directed to landfills and incinerators; or from
renewable and alternative fuels such as biomass, lignite (brown coal), tires,
and plastics to create syngas for power generation or reformed into liquid
fuels for transportation. For more information, visit our website at
www.powerhouseenergy.net.