Powerhouse Energy Share Discussion Threads

[whatsthepoint] 02/1/2020 09:34

Perhaps you should reserve judgement until you have all the facts.

[whatsthepoint] 02/1/2020 09:33

Well maybe as in the last news we will here more why the company sees it as a good deal. "The directors of PowerHouse believe that the post-acquisition enlarged company will be better understood by its customers and investors, with rights to markets and developments in-house, and will be able to present a clear and unambiguous message about its innovative British technology which provides a solution to the increasing problem of unrecyclable waste plastic. These negotiations are progressing well and are now subject to final documentation. A further announcement will be made in due course as appropriate.

[tewkesbury] 02/1/2020 09:27

To be honest I think shareholders should vote against it and send David Ryan back to get better terms for PHE. Why not. Where else could W2T go?

[whatsthepoint] 02/1/2020 09:25

The deal secures more revenue for PHE gets W2T share as well hence the higher revenue expectations as well. I'm sure the circular will help illuminate the reason the board have recommended and signed an agreement for the deal. They are working for the best interests of shareholders after all.

[whatsthepoint] 02/1/2020 09:22

Well I don't see it as appalling as a shareholder and I for one will be voting for it, as it's far better than no deal. The two companies together are worth more than the sum of the two parts. Unity and more security with known future revenue of circa £5.5 million. A medium term target of 3p and a £100 mil company on known contracts alone.

[deccer1] 02/1/2020 09:19

My guess is either that W2T might have had difficulty raising cash to fund their share of SPV's because investors didn't like the set up, and are looking to PHE to bail them out, or perhaps this is what they really intended all along as a way of getting control of PHE. We may never know. However the dilution being proposed is appalling for PHE shareholders who have suffered badly all along in my opinion.

[deccer1] 02/1/2020 09:11

W2T publicity material put PHE's expected revenue from a SPV for one unit at only £200,000 per year.

[whatsthepoint] 02/1/2020 09:03

Ken Chung It's time to buy not to sell Please save yourself and don't short it.

[whatsthepoint] 02/1/2020 09:01

No not at all very happy as the future is very bright for PHE. It's Coming out the mushroom farm into the light. !!Surely you can see that being such an avid watcher. Even you must marvel at the future revenue of just for starters circa £5.5 million a year. With the prospect of thousands of plants globally. Easy £100 mil company sprouting from its acorn.

[ken chung] 02/1/2020 08:59

AFC sold their 24% stake in W2T for just £20k a few months ago so that valued 100% of W2T at just £83k. On that basis the proposed W2T takeover terms should be 99:1 in PHE's favour, not 60:40, but I will be generous and say 95:5. You can still vote against it and the dilution.Lemmings and mushrooms only.

[ken chung] 02/1/2020 08:51

You must be in a world of pain.

[whatsthepoint] 02/1/2020 08:31

The proposed dilution is in the price you muppet. Market is very happy with the proposal. It's only you and your negative friends that is upset.

[ken chung] 02/1/2020 07:36

Lots of dilution proposed.Lemmings and mushrooms only.

[cmackay] 01/1/2020 16:29

Happy new year!

This would be an interesting development for PHE

[vatnabrekk] 31/12/2019 16:54

Happy New Year to everyone when it comes, including Tewksbury!

[whatsthepoint] 31/12/2019 15:58

I think you are being very unfair their Tewksbury the point is the market has accepted the new valuation based on the deal going through It was deccer a known negative who suggested we fall back but that's what he wants The neg heads and the market makers are all going to be very surprised by where this is going.

[tenapen] 31/12/2019 14:27

Very harsh,

Tewkesbury, please do not post again as the last thing this thread needs is you. There are other phe threads for 'posters with attitude'.

[tewkesbury] 31/12/2019 13:27

vatnabrek please do not comment as everything you write seems to show your ignorance.

[vatnabrekk] 31/12/2019 13:05

If the market (MMs) suspected that this deal was seriously dilutive, surely they would have dropped the share price immediately rather than wait for it to happen. Instead, it seems the market is pushing the share price upwards.

[deccer1] 31/12/2019 12:12

If the takeover ever gets approval I bet the mm's will drop the price back down to 0.3p afterwards as the dilution kicks in.

[ken chung] 31/12/2019 11:49

Are you seriously saying PHE will buy W2T then not take on any of their staff? Nonsense. Not even Howard White and his son? What about Tim Yeo who recently left the Board of another of the trio of related parties AFC and joined W2T?

Do you realise that a large shareholder like HW would be in PHE, would be legally entitled to a place on the Board? He could not be stopped from joining the Board even if you wanted to stop him imo.

PHE could take on W2T staff and pay them in cash plus confetti dilutive PHE shares.

+++++++++++

Ken Chung
31 Dec '19 - 11:02 - 11352 of 11356 Edit

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.

++++++++

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 11:32

Keep trying they will only add staff when revenues support it.

[ken chung] 31/12/2019 11:22

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.

In a recent presentation David Ryan said he sees PHE running with about 30 staff in future. So even more expense or dilution if they are paid in shares!

[whatsthepoint] 31/12/2019 11:11

Ken you still don't get it do you. There will be revenue generation for engineering work on the future 11 projects plus Dave Ryan has already stated he is getting interest from other customers for revenue engineering work. The suggested board structure will I am sure become clear in the circular to shareholders. it is highly possible with revenue and future royalties they will never ever need to raise another penny from the market.