REG - Active Energy Group - Sale of the Lumberton site for $4.65 million

Active EnergyAnnouncement

31/03/2022 07:00

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RNS Number : 6797G  Active Energy Group PLC  31 March 2022

The information contained within this announcement is deemed by the Company to
constitute inside information for the purposes of Regulation 11 of the Market
Abuse (Amendment) (EU Exit) Regulations 2019/310.

 

 

Active Energy Group Plc / EPIC: AEG / Sector: Alternative Energy

 

31(st) March 2022

Active Energy Group Plc

("Active Energy", "AEG" or the "Company")

 

Sale of the Lumberton site for $4.65 million

 

Active Energy, the London quoted international biomass based renewable energy
business, is pleased to announce it has entered into a sale and purchase
agreement with Phoenix Investors LLC ("Buyer") for the sale of its Lumberton
site in North Carolina (the "Lumberton Site").

Highlights:

·    Sale of Lumberton Site for gross cash proceeds of $4.65 million
(before expenses)

·    Net proceeds of the sale will be used for the development of the
Company's CoalSwitch(TM) production facility at Ashland, Maine

·    Active Energy's immediate strategic focus is on completing its first
CoalSwitch(TM) production facility in Ashland, Maine (the "Ashland Facility")

Sale of the Lumberton Site

The funds raised by the Company in December 2021 have allowed it to commence
work on permitting for the Ashland Facility and to complete engineering and
design activities. The net proceeds from the sale of the Lumberton Site, which
had a net book value as at 30 June 2021 of $4.0 million, will allow the
Company to further its development of the Ashland Facility.

AEG is seeing unprecedented enquiries for the CoalSwitch™ product following
the independent test results demonstrating the superior qualities of
CoalSwitch™ over both coal and white pellets. The completion of the Ashland
Facility will allow the Company to meet the growing potential demand for this
next generation fuel from both power generation markets and other
hard-to-decarbonize industries.

Phoenix Investors LLC is a US-based commercial real estate firm, the core
business of which is the revitalisation of former manufacturing facilities
throughout the United States. The Lumberton sale is subject to a 75-day due
diligence and closing period, with closing of the transaction and receipt of
sale proceeds expected in June 2022.

Prior to the completion of the sale, Active Energy will be moving certain
CoalSwitch(TM) equipment from the Lumberton Site to the Ashland Facility for
deployment in the continued development of the CoalSwitch™ plant at the
Ashland Facility.

Michael Rowan, CEO of Active Energy, said:

"Based on the accelerating level of enquiries from prospective customers, we
need to have commercial production of CoalSwitch™ as soon as possible. The
strategic focus is upon acquiring and developing sites in the US and Canada
that give us the quickest pathway to production.

"The first priority for AEG is to begin commercial production of
CoalSwitch(TM) at the Ashland Facility as quickly as possible. Reinvesting
proceeds from the sale of the Lumberton Site into our Ashland Facility allows
AEG to accelerate this process.

Commercial production at the Ashland Facility is critical not only because AEG
can meet customer demand, but also because the environmental data from both
the operating facility and resulting fuel will accelerate the permit process
in other locations.

Prospective commercial partners from the US Southeast are keen for AEG to
develop commercial production facilities in the region and AEG will work
toward this once the activities at the Ashland facility progress.

Current feedback confirms CoalSwitch™ has a significant role in the
transition toward the zero-carbon economy and future energy security. We look
forward to delivering CoalSwitch™ to customers."

 

ENDS

 

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

                                      Andrew Diamond (Chief Financial Officer)

 Allenby Capital Limited              Nick Naylor / James Reeve / Freddie Wooding (Corporate Finance)            +44 (0)20 3328 5656

 Nominated Adviser and Joint Broker   Amrit Nahal (Sales and Corporate Broking)

 Panmure Gordon & Co                  John Prior / James Sinclair-Ford / Harriette Johnson (Corporate Finance)   +44 (0)20 7886 2500

 Joint Broker                         Hugh Rich (Corporate Broking)

 Camarco                              Gordon Poole / Tom Huddart / Emily Hall                                    aeg@camarco.co.uk

 Financial PR Adviser                                                                                            +44 (0)20 3757 4980

 

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™ 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 significant plant modification. Active Energy Group's immediate
strategic focus is the production and commercialisation of CoalSwitch™.

 

 

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