Powerhouse Ventures to sell quarter of its Invert Robotics stake
New Zealand technology incubator Powerhouse Ventures aims to sell a quarter of its stake in Invert Robotics for NZD1.3m ($1m), in a deal subject to the completion of a pre-emptive shareholder process and co-sale rights. The move is in line with Powerhouse's policy of reducing its holdings in firms that grow beyond their seed stage. Chairman Russell Yardley said the sale would result in a profit above Invert's current book valuation and introduce "new institutional and sophisticated investors" to the firm.

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.

(BusinessDesk)

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. Anti-spam verification: Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

FPH - Notification of closing date for Director nominations

Steel & Tube Shareholder Newsletter June 2023

TEM - Final Results

FSF - Capital Return - Interim Orders Received

June 12th Morning Report

NWF - Aokautere Expansion - Fast-Track Consent Referral

BPG - PEARL DIVER MARKET UPDATE

Air New Zealand provides earnings guidance update for FY23

Meridian / NZAS demand response agreement unconditional

AIA - Auckland Airport FY23-27 price changes

