ALPHA PROSPECTS PLC
(“Alpha” or the “Company”)
Active Energy Update
Update on Canadian Forestry Joint Venture
Alpha Prospects Plc, the investment management company listed on the GXG Exchange, focussed on companies with fast growth and/or recovery prospects, is pleased to inform shareholders of an update issued by its investee company Active Energy Group Plc (AIM: AEG.L):
“Active Energy Group Plc, the London Stock Exchange AIM-listed international supplier of industrial wood chip and timber, Biomass for Energy (BFE) fuel products, and forestry asset development services, announced that it is aware of online speculation concerning its Canadian forestry joint venture company, KAQUO Forestry & Natural Resources Development Corporation and made the following statement.
On 18 July 2014, the Group announced that it had entered into an important new joint venture to commercialise substantial mature forestry assets in Alberta, Western Canada, owned by the Métis Settlements of Peavine, Paddle Prairie and East Prairie.
Subsequently, KAQUO was formed as a joint venture company, with the Group holding a 45% equity interest, to exclusively commercialise the forestry assets, at that time, as agent on behalf of the Métis Settlements.
The Board of AEG confirms that at the KAQUO Métis Settlements Economic Development Summit, held in Edmonton Canada on 27 January 2015, KAQUO commented that it had received three non-binding, conditional offers, in aggregate amounting to approximately US$300 million subject to further due diligence, which KAQUO may or may not accept and which may or may not come to fruition, depending on that due diligence process.
The offers were received as a result of the pre-marketing roadshow announced previously, to subscribe for a non-controlling equity stake in a yet to be incorporated subsidiary of KAQUO to commercialise approximately 108,000 hectares of the aforementioned Métis Settlements forestry assets.
The Board of AEG understands that it is the intention of KAQUO to accept one of the offers, each of which is subject to due diligence, and to enter into detailed negotiations of legal agreements with the successful bidder.
A further announcement will be made no later than when such negotiations, which are expected to last several months, are concluded.”