No sale for Powerhouse’s NZ robotics company after all
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Powerhouse Ventures will not be selling a $1.2 million stake in Europe-focused Invert Robotics after all.
The sale fell through because one of the sale conditions was unmet by the deadline — though chief Paul Viney would not comment on which condition.
Instead, the Australian investor which was looking to buy 11 per cent of Powerhouse’s shareholding, will put that money into Invert Robotics’ $4-10 million capital raising.
“$4 million is the minimum to enable them to fund expansion into the airline and European dairy industries. $10 million would let them pursue an M&A [merger and acqusition] play in Europe,” Mr Viney told Stockhead.
“They can do the job with $4 million and pursue the M&A opportunities later, but there is such interest [now] they could get it all.”
Powerhouse (ASX:PVL) is not looking for a buyer for its 34.6 per cent stake in Invert.
But Mr Viney told Stockhead during an Australian investor roadshow in October, they’re righting the ship with a more hard-nosed, commercial approach to their investments.
Chairman Russell Yardley said he was amazed that some of the portfolio companies had been around for a decade but had not sold anything.
“What’s the purpose of being patient? It’s to give the companies time to build product, IP, grow the company and IPO,” he said.
“I want our portfolio companies to earn our patience. We haven’t been demanding enough.”
Last week Powerhouse sold most of its stake in battery company ArcActive, yielding $1.8 million. Mr Viney believes they’ve also offloaded the last 0.47 per cent.
Powerhouse will welcome the cash. At the end of September it had $339,000 left and planned to spend $1.5 million this quarter — including just over $1 million on staff and admin costs.
Powerhouse shares were flat in Tuesday morning trade at 35c, towards the bottom end of of its 52-week range of 27c to 85c.