Business
Acquisition of the entire shareholding of Protos
Acquisition of the entire shareholding of Protos.
About this update from Powerhouse Energy Group Plc
[{"type":"text","content":"\n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, OR SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT.\n \n2 May 2023\nPowerhouse Energy Group Plc\n (the \"Company\" or \"PHE\")\n \nAcquisition by PHE of the entire shareholding of Protos Plastics to Hydrogen No 1 Ltd\n \nPowerhouse Energy Group Plc (AIM: PHE), a company pioneering integrated technology that converts non-recyclable waste into low carbon energy, is pleased to announce that it has assumed full ownership and control of the Protos plastics to hydrogen project at the Protos site near Chester in the UK (the \"Site\").\n \nThis has been brought about by PHE completing the acquisition of the entire shareholding in Protos Plastics to Hydrogen No 1 Ltd from Peel NRE Ltd (\"Peel\") for a nominal payment of £1. Protos Plastics to Hydrogen No 1 Ltd is the Special Purpose Vehicle (\"SPV\") established for the development of the plastics to hydrogen project at the Site utilising PHE's technology.\n \nThe acquisition brings to an end previous discussion regarding PHE taking a 50% shareholding in the SPV.\n \nPHE has agreed a variation of the IP Licence Agreement signed on 30 June 2021 with Peel. The variation confines the beneficiary of the licence to the SPV. The Peel option to extend its exclusivity in respect of its deployment of PHE's technology will terminate.\n \nThe Loan Facility Agreement between PHE and the SPV will be extended for one year and as a result of the acquisition will now be an intragroup arrangement.\n \nThe Option Agreement (the \"Option\") between Peel and the SPV enabling the SPV to lease the Site will remain in place and will be amended to limit any annual rent reviews to between 2% and 5%, such reviews in the previous version of the lease being uncapped. The Option has also been extended to 28 March 2024, with the ability to extend for a further year on payment of an extension fee of £150,000. A fee of £400,000 for provision of the gas easement and £532,000 for the power export facility will be payable by PHE to Peel on entering into the lease.\n \nThe Subscription and Warrant Agreement dated 9 September 2020 made between (1) Peel Holdings (IOM...