REG - Active Energy Group - Settlement agreement with Player Design Inc.

Active EnergyAnnouncement

05/03/2024 07:00

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RNS Number : 5468F  Active Energy Group PLC  05 March 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").

 

5 March 2024

Active Energy Group Plc

("Active Energy" or the "Company")

Settlement agreement with Player Design Inc.

Active Energy (AIM: AEG, OTCQB: ATGVF), the international biomass based
renewable energy business, announces that, further to its announcement on the
22 February 2024, the Company and its subsidiary Advanced Biomass Solutions
Limited have, on 4 March 2024, entered into a settlement agreement (the
"Settlement Agreement") with Player Holdings LLC together with its
subsidiaries MaineFlame Inc, Player Design Inc and Tyler Player (together, the
" PDI Parties" or "PDI") in regard to former activities for the potential
production of CoalSwitchÒ at PDI's facility as Ashland, Maine ( the "Ashland
Facility") .

The PDI Parties have agreed to pay Active Energy a cash payment of $1,650,000
by no later than 5th March 2024, in consideration for, inter alia:

·    The return of cash proceeds formerly committed by Active Energy
toward the development of the Ashland Facility.

·   Active Energy transferring the ownership of certain production
equipment, not essential to future CoalSwitch® production, currently located
at the Ashland Facility and elsewhere in Maine to the PDI Parties (the
"Transferred Assets"). The book value of the Transferred Assets as at 30 June
2023 was $2.5 million.

·    PDI will retain the ownership of its intellectual property created
and developed in respect of specific know-how for its production methods at
the Ashland Facility, and PDI will retain rights to own, develop, license, and
use this specific know-how. These rights do not infringe upon Active Energy's
current IP and PDI is not permitted to use any of Active Energy's existing
CoalSwitch® trademarks nor use any of Active Energy's existing proprietary
intellectual property in the US, Canada or worldwide.

Active Energy retains complete ownership of all its original patents on the
steam explosion process, including all production knowledge acquired from the
former production activities at the Ashland Facility applicable for its future
production methods for biomass products. In addition, both Active Energy and
the PDI Parties have terminated all current legal claims against each other.

Future CoalSwitch® production

Since September 2023, Active Energy has focused on improvements to both
CoalSwitch® fuel and the production processes utilizing the new executive
management team based in the US. At the Interim Results, the Company announced
a working partnership with Omega Thermal Solutions Group LLC, based in the US,
to develop a new manufacturing process and create variants of CoalSwitch®
fuel focusing on a torrefaction production process. The improved fuel
performance metrics, such as higher fixed carbon content allows these
biocarbon fuels to participate in the growth markets such as soil amendments,
air filtration, ferro silicon and the metallurgical steel industries. This
product development is opening new revenue opportunities for CoalSwitch®.

Michael Rowan, CEO of Active Energy, commented: "An agreement with PDI
regarding the former production activities at Ashland has been achieved. The
Company can now develop an alternative strategy for the future production of
CoalSwitch® utilizing the knowledge gained from the operations at Ashland and
the commercial scale burn tests we have completed."

Enquiries:

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

                                Michelle Fagan (Chief Financial Officer)
 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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