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


'Visionary' Leaders: Primary Sector Council Announced

A group of visionary agribusiness leaders is set to help our primary sector capture more value from its work, Minister of Agriculture and Rural Communities Damien O’Connor says ... More>>


Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>


Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>


IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>


Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>