Business Update

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) James Leahy  (Non-Executive Chairman)	[e-mail]
Allenby Capital Limited Nominated Adviser and Broker	Nick Naylor/James Reeve/Daniel Dearden-Williams (Corporate Finance) Amrit Nahal (Sales/Corporate Broking)	Office: [phone]
Camarco Financial PR Adviser	Tom Huddart / Emily Hall / Lily Pettifar	[e-mail] Office: [phone]
Scoville PR US PR Adviser	John Williams	[e-mail]

Website	LinkedIn	Twitter
www.aegplc.com	www.linkedin.com/in/active-energy-group-plc/	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.

 

END