TIDMAEG
RNS Number : 0595H
Active Energy Group PLC
29 July 2019
Active Energy Group Plc / EPIC: AEG / Sector: Alternative
Energy
29 July 2019
Active Energy Group Plc ('Active Energy', 'AEG' or the
'Company')
Results of AGM and Statement
Active Energy, the London quoted international biomass based
renewable energy business, is pleased to announce that at its AGM
held today all resolutions were passed. The votes were cast as
follows:
Resolution Votes For Votes Against Withheld
One 390,899,434 101,475,295 45,000
------------ -------------- ---------
Two 393,244,434 101,175,295 -
------------ -------------- ---------
Three 393,244,434 101,175,295 -
------------ -------------- ---------
Four 352,472,286 141,947,443 -
------------ -------------- ---------
At the meeting, Non-Executive Director, Simon Melling, made the
following statement.
"AEG has been through a crucial phase in its development over
the past 12 months, during which the Board initiated a complete and
extensive review of strategy and identified a clear development
path. This focussed on the core areas of our business and the
commercialisation of our technology, while simultaneously,
addressing legacy issues. The main thrust of these efforts has
consistently been to add long term value for all stakeholders.
"As shareholders will be aware, the pressing need for AEG was to
concentrate on generating revenue, whilst also building a
strategically located operational base in order to produce various
pelletised biomass fuels including CoalSwitch(TM). Accordingly, the
North American Lumberton Site ('Lumberton') was identified as ideal
for the Company's near-term ambitions. Lumberton, consisting of up
to 415,000 sq. ft of covered factory space and circa 151 acres of
surrounding land in prime lumber districts, has all the requisite
ancillary facilities to produce CoalSwitch(TM), including power
supplies, permits, water treatment facilities, a research and
analysis lab as well as offices. It also has a critical advantage
in being located adjacent to AEG's joint venture partner Georgia
Renewable Power LLC ("GRP").
"Since the acquisition of Lumberton in March 2019, the Board has
achieved a series of significant steps including:
1. The award of a US$500,000 building re-use and renovation grant for Lumberton;
2. The closure of the Utah site and the transportation of the test reactor to Lumberton;
3. Commenced operation of the test reactor enabling a testing programme for prospective clients;
4. Signed a five-year contract for the supply of up to 800,000
tonnes per annum of feedstock to Lumberton;
5. Signed a lease agreement with Tencate Protective Fabrics, an
existing tenant at Lumberton, including an agreed increase in
rental income;
6. Signed a lease agreement with Renewable Logistics Systems,
LLC ('RLS') including land within Lumberton to be used for saw
logging and wood processing, to complement the business activities
relating to the Company's CoalSwitch(TM) and biomass
operations;
7. Appointed the experienced US based engineering and consulting
firm, Absolute Welding & Consulting to install the commercial
scale reactors;
8. Commenced work for the construction of a five-tonne per hour
CoalSwitch(TM) plant to be operational in Q4 2019;
9. Raised GBP3.4 million (before expenses) through the further
subscription of Series B convertible loan notes by both existing as
well as new European and Asian institutional investors; and
10. Entered into a joint venture agreement with Renewable
Logistics Systems LLC ("RLS"), a supplier of saw-logs, pulpwood and
wood chips to international and domestic markets to enter the
saw-logging export market and to handle forthcoming logistics
operations at Lumberton.
"This progress, and the resolute direction in which the Board is
taking the Company, has been endorsed by the new investors.
"The Board wants to take this opportunity to emphasise certain
points that it believes all stakeholders should be aware of.
Shareholders have been disappointed in the past and the Board is
and remains aware of this. Accordingly, the Board has had to make
tough decisions over the last 12 months. These have included a
restructuring of the operational team in order to execute a revised
business model and initiate a path toward future financial
success.
"The new strategy and the raising of capital have been aligned
around a 'back to basics' approach in order to allow AEG to
capitalise on the commercial opportunities which are currently
available to AEG in the biomass and renewable fuels markets. This
emphasis has meant that AEG's resources have been directed, in the
near term, toward North America, specifically Lumberton. With such
an effort, the Board believes the likelihood of success will be
greatly enhanced.
"Progress in the first 100 days of owning Lumberton as
highlighted above, has translated into credibility for AEG in the
biomass marketplace being re-established. This is critical for new
commercial opportunities to become available to AEG. These
opportunities are not only from partners such as RLS and GRP but
also new US and international commercial partners from the
renewable fuels industry. A working five-tonne per hour plant to
produce CoalSwitch(TM) still remains the prime focus, nonetheless
AEG is also analysing and developing the adjacent opportunities,
which both Lumberton and AEG's experience provide.
"Existing opportunities in Newfoundland and Alberta remain part
of AEG's strategy. The historic plans in these areas are being
reassessed and reconfigured in consultation with the relevant local
government and local partners. The Board believes future
developments in both these territories will be aided by operations
at Lumberton.
"With the growing environmental and regulatory awareness on
fossil fuels, the opportunities for black pellet type biomass fuels
are increasing in importance. Additional research and engineering
resources will be committed in the next 12 months to develop
further AEG's core work streams. This work must be progressed
against a continual awareness of the biomass fuel market pricing
dynamics. Pricing remains firm in the near term, but the Board is
continually aware of pricing trends as AEG competes in a global
market.
"AEG's commercial and strategic goals are now clear. The future
of AEG is tied to success at Lumberton and the creation of
complementary revenues streams from lumber and agricultural crops
to the utilisation of other waste streams to create pelletised
renewable fuels. The Board has achieved much over the past 12
months but more hard work is required to fully implement AEG's
growth strategy.
"The Board would like to thank all shareholders and stakeholders
for their continuing support over the past 18 months. The last 3
months have demonstrated some of the true potential for AEG and
with the support of all AEG's stakeholders, the Board now believes
that commercial success is realistic. This means that AEG will
continue with its previously publicly stated ambitions to transform
low cost biomass into renewable fuels of the future.
"The Board looks forward to updating the market on our
developments as we execute our strategy, expand opportunities at
Lumberton, including the completion and operation of the first 5tph
CoalSwitch plant and expand into the growing biomass fuel market to
deliver value."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
Enquiries& Further Information:
Website LinkedIn
www.aegplc.com www.linkedin.com/company/activeenergy
--------------------------------------
Enquiries
Active Energy Group Michael Rowan
Plc Chief Executive Officer (Active
Energy)
Antonio Esposito
Chief Operations Officer
(Active Energy)
--------------------------------- ----------------------------
SP Angel Corporate David Hignell / Lindsay Mair Office: +44 (0)20
Finance LLP / Jamie Spotswood 3470 0470
Nominated Adviser
and Broker
--------------------------------- ----------------------------
St Brides Partners Melissa Hancock / Gaby Jenner info@stbridespartners.co.uk
Financial PR Adviser Office: +44 (0) 20
7236 1177
--------------------------------- ----------------------------
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(TM) 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 plant modification.
Active Energy Group's immediate strategic focus is the
production and commercialisation of CoalSwitch(TM) and
SuperFuel(TM), a low emission CoalSwitch(TM) blend that utilises
waste coal fines.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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