Sharechat Logo

Powerhouse Ventures won't proceed with sale of Invert Robotics stake

Tuesday 14th November 2017

Text too small?

Christchurch-based technology incubator Powerhouse Ventures will not proceed with plans to sell a quarter of its Invert Robotics' holding for $1.3 million as one of the sale conditions has not been satisfied.

In September, Powerhouse said it had been approached during Invert's current financing round and announced plans to sell, stating the sale would result in a profit above its current book value of Invert. It currently owns 34.6 percent of the company and the sale would have reduced that to between 23.6 percent and 28.2 percent of the shares. 

The deal was conditional to completing a pre-emptive shareholder process and co-sale rights under the shareholder agreement it has with Invert. "Whilst Powerhouse agreed to the now-cancelled transaction, we are more than happy to maintain our higher holding stake in Invert," Powerhouse said. 

According to Powerhouse, the potential buyer will now invest directly in Invert's current capital raise to ensure it achieves its required holding level of Invert shares. Invert is undertaking an initial capital raise of A$4 million which is proceeding "terribly well," said Powerhouse chief executive Paul Viney.  The book is expected to be closed in a week or two. He declined to name the potential buyer.  

Invert will subsequently look to raise around a further A$6 million to "enable M&A expansion throughout Europe," he said. The second part will take place over the next 12 months, according to Viney. 

Invert Robotics has developed a novel climbing robot system for remote inspection services in the dairy and food processing sectors as well as the aviation industry. According to Powerhouse it has an enterprise value of $10.7 million and seven employees. 

Powerhouse shares recently traded at 35 Australian cents on the ASX and have more than halved this year. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Property for Industry bond to pay 4.25%
Overseas investor rules cool house price expectations - Colliers
Annual migration slows as departures increase; tourism hits record
Boost to listed property sector likely if building depreciation regime is reinstated
Warehouse earnings fall 13% in year of 'significant change'
Second CBL subsidiary sold
Auckland Airport plans to raise up to $175M in bond sale
Michael Hill names new CEO; Taylor departing due to ill-health
NZ dollar rises on outlook for economy, increased risk sentiment
September 21st Morning Report

IRG See IRG research reports