Powerhouse Ventures merger announcement

Powerhouse Ventures (ASX:PVL) has revealed a significant development involving its portfolio company, Revaia Pty Ltd. The company announced a binding heads of agreement for a merger with RegenCo Group Ltd. This strategic move involves an all-scrip acquisition valuing Revaia at A$24 million in equity, with Powerhouse Ventures and other Revaia shareholders set to own 32% of RegenCo after completion.

Overview and future prospects

The merger between Revaia Pty Ltd and RegenCo Group Ltd is a strategic initiative by Powerhouse Ventures (ASX:PVL) aiming to enhance and diversify their carbon credit portfolio. Valued at A$24 million, the all-scrip acquisition will see Revaia shareholders owning a significant share of RegenCo. The merger is set to expand RegenCo's national presence, mitigate regional risks, and increase annual production to around 450,000 Australian Carbon Credit Units (ACCUs). With projected revenues of approximately $20 million at full production, RegenCo is poised for growth, supported by regulatory mechanisms and demand for ACCUs. Powerhouse Ventures continues to invest significantly, anticipating a holding value of over $3 million post-merger, and maintaining board representation to steer future growth.

Executive insights on the merger

This merger is a strategic step in expanding our carbon credit portfolio, providing diversity and stability. The collaboration with RegenCo positions us as a notable independent Carbon Project Developer in Australia, ensuring growth and innovation in the sector.