REG - Active Energy Group - Business Update

Active EnergyAnnouncement

13/05/2024 07:00

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RNS Number : 0694O  Active Energy Group PLC  13 May 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").

 

13 May 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.

Further to its update announcement of 9 April 2024, the Company has engaged in
discussions with a number of parties regarding strategic opportunities and the
potential sale of the Company's CoalSwitchÒ assets, held within the Company
and its subsidiaries (the 'Group').  To date, discussions have resulted in a
number of proposals being received by Active Energy and these are being
considered by the Board.  In order to preserve its current capital resources,
the Company is also evaluating its operations in the United States and
internationally.

It remains the Board's belief that CoalSwitchÒ has the potential to become a
market leading, next generation renewable biomass fuel that can transform
current coal consumers including coal fired power stations, heavy industries
and its use can be extended  toward the existing biomass industry and its
current dependence on the use of white pellet fuel resources.  The Board
continues to pursue options to maximize value either via a disposal of
components of the Group or a sale of the CoalSwitchÒ assets and its
associated intellectual property.  The CoalSwitch® 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 Player Design Inc's facility at Ashland in Maine that
may be applicable for the future production analysis for additional biomass
products; and

iii)   all the relevant customer and internal test data.

The Group's other assets currently comprise:

i)     cash and cash equivalents of approximately $0.5m; and

ii)    a 4.1% shareholding in Alpha Prospects Limited ("Alpha Prospects")
which has a book value of approximately £0.68m.  Alpha Prospects is an
unquoted investment company that focuses on green technology investments, and
it has incubated several new technologies in recent years. Within its
portfolio, Alpha Prospects' latest focus is upon plasmoid related technologies
and the commercial development of this technology for application in the
United States, Asia, India and the United Kingdom. The Board is currently
working with Alpha Prospects to explore options for the disposal of the
Company's shareholding.

Given the reducing cash balances of the Company as a result of the ongoing
operating costs, including the on-going costs related to the admission of the
Company's ordinary shares to trading on AIM, should the Board not receive an
acceptable offer for the CoalSwitchÒ assets in the near term, it believes
that it will have no option but to consider a members voluntary liquidation,
in order to return capital, if possible to shareholders. Should this happen,
it is not known at this stage what, if anything, would be returned to
shareholders in an orderly winding up of the Company.

At the current time the Board, based on the Company's limited cash resources,
considers that the Company's audit for the year ended 31 December 2023 (the
"FY 2023 Results") may not be completed before 30 June 2024. If the FY 2023
Results are not published by 30 June 2024 the Company's ordinary shares will
be suspended from trading on AIM.

Further updates will be made in due course where appropriate.

Enquiries:

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

                                James Leahy  (Non-Executive Chairman)
 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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