Active Energy Group PLC Raises £3.4 million To Accelerate Development (7142E)
July 08 2019 - 2:00AM
UK Regulatory
TIDMAEG
RNS Number : 7142E
Active Energy Group PLC
08 July 2019
Active Energy Group Plc / EPIC: AEG / Sector: Alternative
Energy
8 July 2019
Active Energy Group Plc
('Active Energy', 'AEG' or the 'Company')
Raises GBP3.4 million To Accelerate Development of US Focussed
Biomass Business
Active Energy, the London quoted international biomass based
renewable energy business, is pleased to announce that it has
raised GBP3,439,719 (before expenses) through the further
subscription of Series B convertible loan notes ("CLNs") by both
existing as well as new European and Asian institutional investors
(the "Fundraise").
The net proceeds of the Fundraise will be utilised primarily to
accelerate the construction of a 5 tonne per hour ('tph')
CoalSwitch(TM) plant at the Company's 151 acres industrial site in
Lumberton, North Carolina (the 'Lumberton Site'). In addition, the
funds will support the planning and engineering work streams that
are required for a further 50 tph plant and support additional
complementary activities including saw logging which will open up
additional revenue streams for AEG.
Lumberton is being developed to be the Company's first permanent
production facility for CoalSwitch(TM), AEG's proprietary
technology that transforms low-cost biomass material into
high-value green fuels, and to serve as the primary base for all
its biomass fuel operations in the U.S. The first 5 tph plant,
which has been shipped from the Company's original Utah site, is
targeted to become operational in Q4 2019. This will create further
revenue for Active Energy and follows the recent execution of two
lease agreements for AEG at the Lumberton Site which will generate
combined annual rent of US$264,000 from the site.
Terms of the CLN
The newly-issued Series B CLNs will rank pari passu to the
existing issued CLN's and have a conversion price of 1p each, a
maturity date of 15 March 2022 and accrue interest at 8% per annum,
payable quarterly in arrears. The CLNs will be listed on The
International Stock Exchange and it is expected that the proceeds
from the Fundraise will be received by AEG during July 2019.
Michael Rowan, Active Energy Chief Executive said, "This GBP3.4
million funding will enable us to accelerate the construction of
our 5 tonne per hour plant and the subsequent delivery of first
commercial CoalSwitch(TM) product, which will drive revenues in the
short to medium term and mark a watershed in the Company's
development.
"As stated previously, we are building a next generation biomass
business and the Fundraise is another strong vote of confidence
from investors regarding the commercialisation strategy of our
innovative products, coupled with our broader growth strategy. We
have come an extremely long way in a relatively short period of
time and we are now focused on building out our operational
capacity and developing the Lumberton Site, which includes carrying
out the engineering studies for our next plant that has a targeted
capacity of 50 tph as well as securing future revenue streams. We
executed two lease agreements at the end of June that will provide
an immediate source of income and we also recently secured a
five-year contract for the supply of up to 800,000 tonnes per annum
of feedstock to Lumberton.
"I am confident that we now have a secure platform for growth
and I look forward to providing further updates on our progress at
Lumberton in the coming weeks."
Additional Information on the Lumberton Site
The Lumberton Site includes all requisite ancillary facilities
for the production of CoalSwitch(TM), including all relevant power
supplies, water treatment facilities, an analysis lab and offices.
The Directors believe that the size of the Lumberton Site ensures
the opportunity for significant expansion of the initial
CoalSwitch(TM) plant via the construction of additional
CoalSwitch(TM) production facilities targeting capacity of up to
400,000 tonnes per annum over the next 2 years. Furthermore, the
Directors expect that AEG will benefit from additional near-term
commercial opportunities including complementary biomass, saw
logging and other opportunities in the Lumberton and North Carolina
areas.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
Enquiries& Further Information:
Website LinkedIn
www.aegplc.com www.linkedin.com/company/activeenergy
--------------------------------------
Enquiries
Active Energy Group Michael Rowan
Plc Chief Executive Officer (Active
Energy)
Antonio Esposito
Chief Operations Officer
(Active Energy)
--------------------------------- ----------------------------
SP Angel Corporate David Hignell / Lindsay Mair Office: +44 (0)20
Finance LLP / Jamie Spotswood 3470 0470
Nominated Adviser
and Joint Broker
--------------------------------- ----------------------------
St Brides Partners Melissa Hancock / Gaby Jenner info@stbridespartners.co.uk
Financial PR Adviser Office: +44 (0) 20
7236 1177
--------------------------------- ----------------------------
About Active Energy Group:
Active Energy Group plc is a London listed (AIM: AEG) renewable
energy company that has developed a proprietary technology which
transforms low-cost biomass material into high-value green fuels.
Its patented product CoalSwitch(TM) is the world's only drop-in
biomass fuel that can be mixed at any ratio with coal or completely
replace coal in existing coal-fired power stations without
requiring plant modification.
Active Energy Group's immediate strategic focus is the
production and commercialisation of CoalSwitch(TM) and
SuperFuel(TM), a low emission CoalSwitch(TM) blend that utilises
waste coal fines.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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