The company said it is close to completing due diligence on its proposed acquisition of Waste2Tricity
PowerHouse Energy Group PLC (), the waste-to-energy technology company, said it knows of no reason for the recent share price surge.
The company said due diligence and legal work on the proposed acquisition of Waste2Tricity (W2T) are nearing completion.
The Protos project, the first targeted commercial application of the company’s waste plastic to hydrogen regeneration technology is proceeding under the direction of Peel L&P.
Peel’s project funding exercise for this first development and its proposed pipeline of future projects is running in parallel with the engineering work.
PowerHouse has received payments for engineering and consultancy services for the completed stage of the project and expects to receive engineering fees this month for the current stage.
PowerHouse’s current cash balances are around £280,000 and with committed incoming fees, these resources should meet outstanding fees associated with the proposed acquisition of W2T and the company’s current net cash burn of administrative costs until the fourth quarter of the year.
Further revenues are expected from operations and the UK exclusivity payment under the option agreement with Peel as set out in the announcement of March 9.
Shares in PowerHouse, which were trading at 1.15p a month ago, were down 14% at 3.13p in early deals on Monday.
Read More: PowerHouse Energy Group PLC unaware of any reason for recent share price surge