AIM-listed PowerHouse already owns Pyromex’s technology, which involves zero emission, ultra-high temperature waste-to-energy gasification technology, under licence. The technology enables the conversion of waste materials into energy through an ‘ultra-high temperature thermal reactor’ without emissions or toxic by-products.
Under the terms of the deal, an initial £625,000 is initially payable. This will be followed by three payments of £625,000 due at six, 12 and 18 months after the completion of the deal. Additionally, based on market capitalisation and profit milestones, two further tranches of £15.25 million could be paid to Pyromex.
Ross Lyndon-James, executive chairman of PowerHouse, says that the deal will enable PowerHouse to ‘fully develop’ its long-term strategic plan to become a market leader in high-tech equipment for manufacturing waste and coal gasification.
PowerHouse, which has only been on the AIM market since 29 June this year, says that the purchase creates new business opportunities in markets such as the European Union and Eastern Europe, the Middle East, South-East Asia and South Africa.
The ownership of Swiss-based Pyromex’s intellectual property and unification of global marketing will allow PowerHouse to scale the business.
Peter Jeney, founder and majority owner of Pyromex, comments: ‘This transaction recognises the progress Pyromex has achieved in developing its gasification technology to date and will accelerate its development through to full-scale commercial operations.’
Jeney will remain with the company on completion of the deal.
In April this year, PowerHouse was acquired by investment vehicle Bidtimes in a reverse takeover. On completion, the merged business changed its name to operate as PowerHouse Energy.