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ACTIVE ENERGY GROUP PLC
Business and Financial Review • Apr 9, 2024
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Business and Financial Review
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National Storage Mechanism | Additional information 
RNS Number : 7607J
Active Energy Group PLC
09 April 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR").
09 April 2024
Active Energy Group Plc
("Active Energy" or the "Company")
Business update
Active Energy (AIM: AEG, OTCQB: ATGVF), the international biomass based renewable energy business, today announces a business update.
Since the Company entered into the settlement agreement with Tyler Player and Player Design Inc ("PDI") on 4 March 2024, details of which were announced on 5 March 2024, the Board has undertaken a review of the Company's business. This review has involved examining all aspects of Active Energy's business, including of the immediate options to produce CoalSwitch Ò , the Company's proprietary technology for next generation biomass fuel. The review has also evaluated how to secure sufficient funding to commence CoalSwitch Ò production, based on new time lines which indicate that it would take the Company a minimum of 12 months to commence production of CoalSwitch Ò if funding was immediately available.
The review by the Board has concluded that the Company, in its current structure, is unable to raise sufficient working capital to build and/or operate a CoalSwitch Ò production facility within the appropriate timeframe. In light of this conclusion, the Board believes that the appropriate course of action to accelerate the development of CoalSwitch Ò is to seek a buyer for the Company's CoalSwitch Ò assets. It is the Board's belief that CoalSwitch Ò is a market leading, next generation fuel that has the potential to transform coal fired power and heavy industries and the existing renewable biomass industry.
The Company's CoalSwitch Ò assets comprise; i) the Company's original patent and trademark portfolio on the steam explosion process to produce the fuel; ii) all production and test data knowhow acquired from the initial production activities at PDI's facility at Ashland in Maine that may be applicable for the future production methods for biomass products; and iii) all the relevant customer test data.
Should the Board receive an acceptable offer for the CoalSwitch Ò assets, a sale is likely to constitute a fundamental change of business pursuant to Rule 15 of the AIM Rules for Companies and would require the approval of shareholders at a general meeting of the Company. Any such disposal is expected to result in the Company becoming an AIM Rule 15 cash shell.
The Company is looking to commence discussions with prospective parties regarding the sale of the Company's CoalSwitch Ò assets at the earliest opportunity but there can be no guarantee that the Company will be able to dispose of the CoalSwitch Ò assets and further announcements will be made as appropriate.
Enquiries:
| Active Energy Group Plc | Michael Rowan (Chief Executive Officer) J ames Leahy (Non-Executive Chairman) |
[email protected] |
| Allenby Capital Limited Nominated Adviser and Broker |
Nick Naylor/James Reeve/Daniel Dearden-Williams (Corporate Finance) Amrit Nahal (Sales/Corporate Broking) |
Office: +44 (0)20 3328 5656 |
| Camarco Financial PR Adviser |
Tom Huddart / Emily Hall / Lily Pettifar | [email protected] Office: +44 (0)20 3757 4980 |
| Scoville PR US PR Adviser |
John Williams | [email protected] |
| Website | ||
| www.aegplc.com | www.linkedin.com/in/active-energy-group-plc/ | https://twitter.com/aegplc @aegplc |
About Active Energy Group
Headquartered in London with operations in the United States, Active Energy Group plc (AIM: AEG, OTCQB:ATGVF) is a biomass-based renewable energy company focused on the production and development of next generation biomass products that have the potential to transform coal fired power and heavy industries and the existing renewable biomass industry.
Active Energy has developed a proprietary technology which transforms waste biomass material into high-value renewable fuels. Its patented product CoalSwitch® is a leading drop-in biomass renewable fuel that can be blended and co-fired with coal at any ratio without requiring significant plant modification or wholly replacing existing biomass fuels.
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