Powerhouse Energy Share Discussion Threads

[ken chung] 31/12/2019 11:02

I assume all senior W2T employees will join PHE in the merger with related party W2T, with Howard White and other W2T Board members taking places on the Board of PHE.

PHE currently have around 5 officers. W2T currently have around 8 officers. So the merger would more than double the senior staffing level, with substantial additional costs, etc; and basically imply W2T taking over the Board by majority. Infact PHE's CEO already came from W2T anyway.

I predict Howard White will be CEO of PHE within 2 years. I am not impressed knowing the history of W2T's involvement. Afterall he set-up both companies when arguably PHE should have been doing all the work themselves in house, so preserving a larger stake of value for PHE and its shareholders. Prior to the signing of the arrangement with W2T in 2017, PHE's original CEO was previously saying they were receiving hundreds of enquiries and leads from potential customers all over the world even before W2T came on the scene.

So PHE will have the additional expense of funding the extra staff, paying W2T's £500k debt and regularly diluting their own shareholders even more and profitability will be years away if ever. And they still have to get a full sized system to work, which is not guaranteed.

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Ken Chung
31 Dec '19 - 08:55 - 11345 of 11352 Edit

So PHE shareholders not only face the huge dilution from AGM resolutions 6 and 7 to issue 66% more shares but now also from the shares to be issued to buy W2T awaiting approval, which they arguably never should have granted rights to anyway but instead done that work in house.

Enjoy your dilution.

Lemmings and mushrooms only.

P.S.
Why didnt PHE just buy AFC's 24% stake in W2T direct from AFC earlier this year for £20k, which was the tiny sum AFC subsequently sold it to W2T for, and for which PHE are now proposing to pay just under £1m in shares to get hold of, and almost £4m in shares to get hold of 100% of W2T?

AFC's sale of their 24% stake in W2T for £20,000 earlier this year only valued 100% of W2T at £83,333. So why are PHE now paying W2T equivalent of Millions of £'s in PHE shares to buy W2T? Either AFC sold their stake for too little, or PHE are paying too much. Both cannot be right.

[whatsthepoint] 31/12/2019 10:52

Shaking off today's seller nicely. Onwards and upwards

[whatsthepoint] 31/12/2019 10:17

That's easily a £100 million pound company being developed from here. With 100's if not 1000's of potential additional customers on proven tech. The future is bright the future is finally there for the taking for PHE. With the right board in place and the backing of a major UK landowner the sky is the limit. Not one for lemmings or mushrooms anymore.

[whatsthepoint] 31/12/2019 10:13

Completely different situation this year. Peel a giant company have backed this after nearly 3 years due diligence. PHE and W2T will combine to strengthen board and company structure to take this global. There is a firm order for 11 plants all to produce hydrogen at circa £14 per project that's a £150 million pipeline that should secure circa £5.5 million annual recurring revenueThat's a company making situation

[nelson5100] 31/12/2019 09:57

That was the same argument used in 2015, 2016, 2017, 2018 and now again in 2019.

[whatsthepoint] 31/12/2019 09:02

You will regret having spouted such a complete load of rubbish over this technology one day. You may actually see the reason why to invest and get on board just in time. I hope you do for your own financial gain.

[ken chung] 31/12/2019 08:55

So PHE shareholders not only face the huge dilution from AGM resolutions 6 and 7 to issue 66% more shares but now also from the shares to be issued to buy W2T awaiting approval, which they arguably never should have granted rights to anyway but instead done that work in house.

Enjoy your dilution.

Lemmings and mushrooms only.

P.S.
Why didnt PHE just buy AFC's 24% stake in W2T direct from AFC earlier this year for £20k, which was the tiny sum AFC subsequently sold it to W2T for, and for which PHE are now proposing to pay just under £1m in shares to get hold of, and almost £4m in shares to get hold of 100% of W2T?

AFC's sale of their 24% stake in W2T for £20,000 earlier this year only valued 100% of W2T at £83,333. So why are PHE now paying W2T equivalent of Millions of £'s in PHE shares to buy W2T? Either AFC sold their stake for too little, or PHE are paying too much. Both cannot be right.

[whatsthepoint] 30/12/2019 18:03

Quite a lot I would imagine being clearly the biggest shareholder of W2T. And a major shareholder in PHE We will find out soon enough. I doubt they will take it over 30% as I am sure they don't want to bid for the entire business. Not really an issue in my mind though. Will just mean a lot of sticky shares and smaller free float. They have already stated 87.5% of acquired shares will have one year lock in so not a major issue

[vatnabrekk] 30/12/2019 17:55

That's a good question nelson. And a rather important one.

[nelson5100] 30/12/2019 17:39

What percentage of the proposed combined entity will the White family control?

[whatsthepoint] 30/12/2019 17:37

Time to raid the piggy banks and build a stake. That's what I believe the smart investors have been doing. In September I saw multiple 2.5 million buys at circa .40p someone gobbled up a lot of stock. Looks like a smart move now. The city will not be able to influence this as easily as they have been able to whilst we have been running on fumes. The new deal and known revenue stream changes that

[cmackay] 30/12/2019 17:36

Gestalt theory emphasises that the whole of anything is greater than its parts. That is, the attributes of the whole are not deducible from analysis of the parts in isolation. The word Gestalt is used in modern German to mean the way a thing has been “placed,”; or “put together”. There is no exact equivalent in English.

[whatsthepoint] 30/12/2019 17:35

Tewksbury exactly that's precisely the way I see it. Proven tech with Patents is as good as a new drug for a major world disease. Ready to outlicence to multiple partners.

[whatsthepoint] 30/12/2019 17:33

Vatnabreak. Mind you I really don't mind if all we have to do is arrange a multiple number of licence agreements with a variety of global partners for global locations and all we get is royalties as we would be a serious cash cow business with minimal operating requirements. No need for vast sums of capital on the balance sheet. In time it would be a great dividend distributor. When we have lots and lots of revenue in the bank then we can finance one of projects without the need for any finance. Win win in my eyes

[vatnabrekk] 30/12/2019 16:53

Yes Tewkesbury / Whatsthepoint, that's the way I see it as well.

It makes more sense to me for PHE (enlarged entity) to be involved in the actual construction and operation of the DGM units, which gives them control over the entire business, rather than the current arrangement where someone other than PHE would be building and operating the units, and PHE would simply be getting a licence fee or share of the net revenue in recognition of their ownership of the technology.

[tewkesbury] 30/12/2019 16:47

If they can get a full size system working next year, it could do for PHE's market capitalisation what a blockbuster drug passing Phase 3 would do for a small biotech.

Could be over £200m next year if things go well.

[whatsthepoint] 30/12/2019 16:44

It will depend who owns and operates the SPV and what percentages belong to whom.

[tewkesbury] 30/12/2019 16:42

vatnabrek I assume W2T would cease to exist after the takeover and the SPV model would be carried forward, with PHE receiving an enlarged ongoing license fee from each SPV's revenues.

[whatsthepoint] 30/12/2019 16:25

Nice day the start of more to come get the cheap shares whilst you can

[vatnabrekk] 30/12/2019 16:04

Tewkesbury, in the event of a take-over or merger of the two companies, I imagine that any existing contracts or agreements between the two would become redundant and void.

Going forward, it depends who takes on the role of owner and financier of the capital cost and operating costs of the DMG unit. If that is undertaken by the New enlarged PHE Group, then presumably there would be no need for licence fee payments.

But if the DMG unit is to be paid for and operated by some other party such as a SPV company or JV, then there would surely be a licence fee payable to the PHE Group. We shall have to wait and see what the new corporate and operating structures look like.

[whatsthepoint] 30/12/2019 15:59

I expect they will renegotiate the terms.

[tewkesbury] 30/12/2019 14:47

vatnakrek, presumably PHE will not only get their 20% ongoing licensing fees but with the takeover also the other 20% W2T would have got from each DMG revenue stream, so the takeover doubles PHE's ongoing revenues from the DMG deployments?