Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Powerhouse plans to double shares on issue in offer

Powerhouse plans to double shares on issue in offer to raise up to A$5.8 mln

By Jonathan Underhill

April 11 (BusinessDesk) - ASX-listed incubator Powerhouse Ventures plans to double its shares on issue, offering to sell new stock at a discount to raise up to A$5.8 million for working capital and investments.

The company, which typically invests in companies formed to commercialise research out of New Zealand and Australian universities, is offering about 29 million new shares to existing holders at 20 Australian cents apiece. That's a 10 percent discount on the price they last traded before being halted on April 9 for this announcement. The stock has slumped 72 percent in the past 12 months.

Powerhouse has been liquidating assets and cutting costs to address its funding position after the ASX questioned whether it had the cash to operate last year, and at the annual meeting in August, chair Russell Yardley told shareholders it didn't want to raise capital when the share price was depressed, trading at around 34 Australian cents.

The renounceable, pro-rata entitlement offer is on the basis of one new share for each existing share held. As at Dec. 31, it had $1.6 million of cash, selling $1.9 million of investments to largely offset a $2.3 million operating cash outflow, and held $192,183 as at March 31. Its portfolio of investments was valued at $17.5 million, down from the $21.1 million value as at June 30, last year.

It raised NZ$818,118 in a sale of convertible notes at 32 Australian cents apiece in December. At the current price of 22 Australian cents, the market valuation is A$6.38 million on the ASX.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Budget Policy Statement: 'Wellbeing Of NZers At The Heart Of Budget Priorities'

“We want a wellbeing focus to drive the decisions we make about Government policies and Budget initiatives. This means looking beyond traditional measures - such as GDP - to a wider set of indicators of success,” Grant Robertson said. More>>


Short Of 2017 Record: Insurers Pay $226m Over Extreme Weather

Insurers have spent more than $226 million this year helping customers recover from extreme weather, according to data from the Insurance Council of NZ (ICNZ). More>>

Environment Commissioner: Transparent Overseer Needed To Regulate Water Quality

Overseer was originally developed as a farm management tool to calculate nutrient loss but is increasingly being used by councils in regulation... “Confidence in Overseer can only be improved by opening up its workings to greater scrutiny.” More>>


Deal Now Reached: Air NZ Workers Vote To Strike

Last week union members voted overwhelmingly in favour of industrial action in response to the company’s low offer and requests for cuts to sick leave and overtime. More>>