REG - Active Energy Group - Business Update

Active EnergyAnnouncement

09/04/2024 07:00

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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 CoalSwitchÒ, the Company's
proprietary technology for next generation biomass fuel. The review has also
evaluated how to secure sufficient funding to commence CoalSwitchÒ
production, based on new time lines which indicate that it would take the
Company a minimum of 12 months to commence production of CoalSwitchÒ 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 CoalSwitchÒ 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 CoalSwitchÒ is to seek a buyer for
the Company's CoalSwitchÒ assets. It is the Board's belief that CoalSwitchÒ
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 CoalSwitchÒ 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 CoalSwitchÒ 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 CoalSwitchÒ assets at the earliest
opportunity but there can be no guarantee that the Company will be able to
dispose of the CoalSwitchÒ assets and further announcements will be made as
appropriate.

Enquiries:

 Active Energy Group Plc        Michael Rowan (Chief Executive Officer)                                 info@aegplc.com

                                James Leahy  (Non-Executive Chairman)
 Allenby Capital Limited        Nick Naylor/James Reeve/Daniel Dearden-Williams (Corporate Finance)   Office: +44 (0)20 3328 5656

 Nominated Adviser and Broker   Amrit Nahal (Sales/Corporate Broking)
 Camarco                        Tom Huddart / Emily Hall / Lily Pettifar                              aeg@camarco.co.uk

 Financial PR Adviser                                                                                 Office: +44 (0)20 3757 4980
 Scoville PR                    John Williams                                                         jwilliams@scovillepr.com

 US PR Adviser

 

 Website         LinkedIn                                         Twitter
 www.aegplc.com  www.linkedin.com/in/active-energy-group-plc/     https://twitter.com/aegplc (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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