REG - Active Energy Group - Sale of Loan Notes & Issue of Equity <Origin Href="QuoteRef">AEGR.L</Origin>

Active EnergyAnnouncement

06/09/2014 20:25

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RNS Number : 0996N
Active Energy Group PLC
23 July 2014 
 
Active Energy Group Plc
("Active Energy Group" or the "Group" or the "Company" or "AEG") 
 
Sale of Loan Notes & Issue of Equity 
 
Active Energy Group plc announces that it has entered into an agreement with
Alpha Prospects plc ("Alpha") for the transfer of £255,000 principal amount of
loan notes 2016 issued by Derlite Ltd., a former subsidiary of the Company,
held by the Company and the associated issue to Alpha of 2,000,000 ordinary
shares in the Company (the "AEG Shares"), in consideration for which the Alpha
will issue to AEG 12,200,000 ordinary shares in Alpha (the "Alpha Shares"). 
 
Application will be made for the AEG shares to be admitted to trading on AIM,
which is expected to occur on 29 July 2014.  Following admission of the AEG
Shares, the Company's enlarged issued share capital will comprise 621,475,570
Ordinary Shares with voting rights. The Company holds 62,500,000 Ordinary
Shares in Treasury and the figure of 558,975,570 Ordinary Shares may therefore
be used by shareholders in the Company as the denominator for the calculations
by which they will determine if they are required to notify their interest in,
or a change in their interest in, the share capital of the Company under the
FCA's Disclosure and Transparency Rules. 
 
- ends - 
 
Enquiries: 
 
Active Energy Group plc
Colin Hill, Non-Executive Chairman                                            
                           Tel: +44 203 021 1500 
 
WH Ireland (Nominated Adviser and Broker)    
Chris Fielding / Nick Field                                                   
                                        Tel: +44 20 7220 1666 
 
Novella Communications
Tim Robertson / Ben Heath                                                     
                                   Tel: +44 20 3151 7008 
 
About Active Energy Group: 
 
·   Company website: www.active-energy.com 
 
·   Active Energy Group Plc, a London Stock Exchange AIM-listed company (AIM:
AEG), is an international supplier of wood chip for Biomass for Energy (BFE)
power generation and MDF manufacturing, high-energy Biomass fuel granules and
granule manufacturing systems, and forestry management services. 
 
·   The Group, headquartered in London, operates from five locations: 
 
o Ukraine, where it is the largest producer and exporter of MDF-quality wood
chip 
 
o Spain and Montenegro, from where it supplies BFE Biomass wood chip to
European power plants 
 
o The United Kingdom, where it operates an R&D facility for its new Biomass
fuel granulating systems 
 
o Canada, where it has recently announced a landmark forestry joint venture
with three indigenous Métis Settlements 
 
·   The Group is led by a highly experienced and dedicated management team
with a proven track record of working in the industries and regions from which
its revenues are generated. 
 
·   In June 2013, AEG acquired its major trading partner and raised
approximately £3.5 million to facilitate future growth and expansion of its
international production and shipping facilities. 
 
·   In May 2014, the Group announced the formation of a new subsidiary, AEG
Pelleting Limited, to commercialise and market a revolutionary new Biomass for
Energy (BFE) fuel granulating process that converts sawdust and other
industrial and agricultural co-products into valuable fuel granules for use in
large-scale power plants and micro-CHP boilers. 
 
·   European Biomass for Energy (BFE) Market: 
 
o  Biomass-fuelled power is expected to account for over 50% of European
renewable energy, according to an EU directive on National Renewable Energy
Action Plans. 
 
o  EU directives and continued commissioning of new Biomass and CHP power
plants in Europe continue to generate additional demand for Biomass fuel, with
little visibility on where that fuel will be sourced. 
 
o  The European Renewable Energy Council (EREC) estimates that Biomass-based
energy production will grow from 43TWh (Terawatt Hours) in 2005 to 250TWh in
2020. 
 
o  Key NGO bodies such as the European Biomass Association and Eurelectric
(the European Union of the Electricity Industry) advocate establishing
harmonised, binding sustainability criteria for solid Biomass fuel. 
 
·   Turkish MDF Market: 
 
o  Turkey is the leading producer of MDF in Europe, producing an estimated 4.3
million m3 in 2012 in six plants around the country. 
 
o  AEG has developed relationships with all of the major Turkish MDF
manufacturers. 
 
o  Currently, circa 69% of the wood chip imported into Turkey comes from
across the Atlantic; all of it for production of wood-based panels, primarily
MDF. 
 
o  By contrast, wood chip from AEG's port-side production facilities in
Ukraine can be transported across the Black Sea in approximately one-tenth of
the shipping time from the U.S., Canada and Latin America, which provides
manufacturers with substantial cost savings and cashflow advantages, as well
as considerably fresher and higher-quality product. 
 
This information is provided by RNS
The company news service from the London Stock Exchange