Thursday 21st September 2017
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Christchurch-based technology incubator Powerhouse Ventures plans to sell about one-quarter of its holding of Invert Robotics for $1.3 million, a premium to its book value.
In a release to the ASX, the company said it had been approached during Invert's current financing round. At present, it owns 34.6 percent of the company and the sale would reduce that to between 23.6 percent and 28.2 percent of the shares.
The deal is conditional to completing a pre-emptive shareholder process and co-sale rights under the shareholder agreement it has with Invert, which will determine its holding after the sale, it said. It will take at least one month to complete.
Powerhouse said the sale would result in a profit above its current book valuation of Invert. Chair Russell Yardley said the sale would introduce "new institutional and sophisticated investors" to Invert ahead of further capital raising to fund the robotics firm's expansion into European dairy and aviation.
"Generally, Powerhouse Ventures aims to own between 20 to 40 percent of its investee companies prior to their expansion rounds when they grow to become 'post-seed stage' companies," the company said. "Invert has now reached this point and has in place the necessary governance and funding arrangements to succeed."
Powerhouse shares recently traded at 30 Australian cents on the ASX, down 62.5 percent this year. It listed last year with an initial public offering price of A$1.07.
Last month the company said it was adjusting its investment portfolio after a review found a number of companies didn't follow Powerhouse's investment strategy.
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