Powerhouse Energy Group PLC (AIM:PHE, FRA:BT81) is asking shareholders to back a capital reorganisation so it can complete a £400,000 placing at 0.2p per share, a fundraise the company has framed as important to extending its cash runway beyond July and keeping its strategy on track.
The AIM-listed waste-to-energy technology group said the conditional placing will issue 200 million shares, while a retail offer could add up to a further £250,000 at the same price.
Powerhouse said it had around £0.5 million of cash, enough for planned activities through the end of July, and noted it had received no interest in raising funds at or above its current 0.5p nominal share value.
To get the placing away, the company wants investors to approve a capital reorganisation that would turn each existing ordinary share into one new 0.01p ordinary share and one 0.49p deferred share. That would create room for fresh equity issuance below nominal value under UK company law.
Net proceeds from the placing are set to go mainly toward planning, permitting and FEED work at Ballymena, further R&D around alternative outputs from its DMG process, and broader working capital including sales, marketing and C-suite strengthening.
Chief executive Paul Emmitt said the funds would help Powerhouse “continue to execute our strategy, progress our technology and help us bring our first project on stream”.