Business
Proposed acquisition of Pyromex Holding, AG
Proposed acquisition of Pyromex Holding, AG.
About this update from Powerhouse Energy Group Plc
[{"type":"text","content":"\n \nRNS Number : 6238L Powerhouse Energy Group PLC 03 August 2011 \n \n\n3 August 2011\n \nPowerHouse Energy Group plc\n(\"The Company\" or \"PowerHouse\")\n \n \nProposed acquisition of Pyromex Holding, AG \n \n \nPowerHouse (AIM: PHE), an alternative energy company specialising in the manufacture and sale of zero emission waste-to-energy equipment systems, is pleased to announce its planned acquisition of the remaining 70 per cent. interest in Pyromex Holding, AG (\"Pyromex\") for an initial consideration of £2.5 million in cash over the 18 months following completion and a maximum potential further consideration of £30.5 million dependent on the achievement of certain market capitalisation or profit targets of the enlarged Group. \n \nPyromex is the developer and owner of zero emission, ultra-high temperature waste-to-energy gasification technology which PowerHouse has under licence from Pyromex and upon which PowerHouse's manufacturing and sales business is based.\n \nThe Directors believe that PowerHouse will significantly expand its sales pipeline by acquiring its technology licensor. Pyromex has, during its technology development phase, generated a global following of potential customers now representing a valuable sales pipeline of future contracts to be delivered through the PowerHouse Group. \n \n \nHighlights \n \n· Conditional agreement for PowerHouse to acquire the remaining 70% of the shares in Pyromex \n \n· Consideration is payable in tranches:\n \n- £625,000 on completion of the sale and purchase agreement (\"Completion Date\");\n- three tranches of £625,000 each, payable at 6, 12 and 18 months after the Completion Date; and\n- two further tranches of £15.25 million each when certain market capitalisation and after tax profit criteria milestones are reached and payable in PowerHouse's shares or cash, at PowerHouse's option. Financing options including a proportion of debt will be explored to fund these stages of the transaction\n· Control of Pyromex on Completion Date will enhance PowerHouse's commercial standing in the market and add considerable IP as...