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Powerhouse makes first investment post-ASX listing

Christchurch-based Powerhouse Ventures has already made its first investment since listing on the ASX last week - taking a stake in a cancer diagnostic system.


It invested A$500,000 (NZ$514,880) in Ferronova's system developed by Victoria University of Wellington and the University of South Australia.


Magnetic probes allow surgeons to more accurately assess the spread of cancer throughout the body.


Powerhouse last week listed on the ASX after raising approximately A$10.5 million. It had sought up to $A20m for investment in commercialising university-developed technology. 


The initial listing price of A$1.07 a share gave it market capitalisation of A$30m. But the price subsequently eased 10 per cent to to A$89c a share.


Powerhouse chief operating officer Colin Dawson said listing price volatility was common. Investors had their own reasons for selling and buying, he said.


The company was considering several investment options in New Zealand and Australia and there would be market announcements in coming weeks.


In a statement the managing director Stephen Hampson said there was a balance of institutional and retail shareholdings by Australians and New Zealanders.


Powerhouse had been involved in commercialising more than 19 university-sourced intellectual property ventures in New Zealand, he said.


The money raised would enable Powerhouse to invest in identified opportunities at Australian and New Zealand universities over the coming year.


Hampson acknowledged the continued support from New Zealand cornerstone investor, Canterbury Development Corporation, which retains a 25 per cent shareholding in Powerhouse.