Placing, Loan Note Conversion and Repayment

About this update from Powerhouse Energy Group Plc

[{"type":"text","content":"\n \nPowerHouse Energy Group plc\n\n(“PowerHouse”, or the “Company”)\n\nPlacing, Loan Note Conversion and Repayment\n\nPowerHouse announces a placing and the partial conversion of the Hillgrove loan note, the repayment of the balance of the loan note and the associated debenture release over the loan note\n\nPowerHouse is pleased to announce that it has completed a fund-raising of £2.5 million, through the issue of 312,500,000 new Ordinary Shares of 0.5p per share (“Shares”). The placing was completed at a price of 0.8p per Share. The proceeds of the fundraising will go largely to repay the loan note not otherwise converted signed between the Company and Hillgrove in October 2012 (the “Hillgrove Note”).\n\nThe terms of the Hillgrove Note were such that the Company was accruing 15% interest against the loan. Hillgrove had extended a total of £3,402,155 to the Company, including accrued interest, and has accepted a £2 million cash pay-out, and conversion of the remaining £1,402,155 into newly issued share capital of the Company at the previously agreed 0.5p conversion price, amounting to 280,430,920 shares. Hillgrove now holds a total of 300,430,920 shares of the enlarged issued share capital of the Company. Hillgrove has committed to a 12 month lock-in period for its newly issued shares. Hillgrove is a related party as defined by the Aim Rules for Companies and accordingly the Hillgrove Note payout and share conversion is deemed a Related Party Transaction.\n\nBy virtue of the conversion and pay-out, the Company will eliminate the Hillgrove Note, and the Debenture over the Company’s assets, held by Hillgrove, will be released, pending receipt by Hillgrove of the £2m and 280,430,920 Shares.\n\nThe fund raising has been managed by Turner Pope Investments who are now appointed as Joint Brokers with Smaller Company Capital Limited. \n\nYady Worldwide, S.A. (“Yady”) a recent investor in the Company, has contributed £500,000 to this raise. Additionally, Yady has agreed to a 12 month lock-in period with the Company.\n\nAdmission of the new Shares will be made in two tranches. The first tranche will comprise all of the placing Shares with the exception of those due to Yady, amounting to 250,000,000 Shares (“First Tranche”). Application for admission to trading on AIM for the First Tranche will be...

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