Stick with the smaller companies for share excitement – up or down – during the summer lull.
Buyers certainly switched on to Powerhouse Energy after the green energy company completed something it had promised shareholders it would do ever since it began life on the junior AIM market in June 2010. It has bought the remaining 70 per cent of Pyromex not already owned.
Hoping that it could be the transformational deal and it really now will be all systems go for the London-based company, the shares rocketed 5.62p, or 643 per cent, to 6.5p.
Pyromex owns a commercial Ultra High Temperature gasification system that can deliver syngas which can readily efficiently, and economically be converted into electricity. It offers significant advantages over competing waste-to-gas technology.
The combined companies will now launch a global waste-to-energy solution group, utilising the patented technology which it hopes will address the growing need for localised handling of waste streams.
Delighted chairman Keith Allaun said: ‘The merger can bring the greatest value to our customers and our shareholders whilst building a much larger competitive company capable of delivering waste-to-energy on a global scale.’ Loss-making Powerhouse had its problems last year when the shares were suspended while the company produced accounts to clarify its financial position. Finally acquiring the remaining Pyromex equity is just what the doctor ordered and with investors now being able to hold AIM shares in an ISA, the stock could undertake a re-rating in the short-term.
LNC Price at posting:
$1.75 Sentiment: LT Buy Disclosure: Held
