ALPHA PROSPECTS PLC
(“Alpha” or the “Company”)
Active Energy Update
Positive Statement Clarifying the New Ukrainian Law
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 (AIM: AEG.L), the London Stock Exchange AIM-quoted international supplier of industrial wood chip for MDF manufacturing and Biomass for Energy (BFE) power generation, global forestry and natural resources development services, and Biomass for Energy (BFE) fuel solutions and systems announces that it is aware of market speculation concerning the law passed by the Ukrainian parliament on 8 July 2015 banning the export of unprocessed wood from the country.
The new legislation stipulates a 10-year ban for ‘unprocessed wood including raw wood, such as roundwood in the form of logs, poles etc.’, which the Board believes will have a positive impact on AEG’s Ukrainian wood chip processing operations.
AEG is the largest producer and exporter of processed wood products (in the form of wood chip) in Ukraine, so the new law will not affect its operations.
In fact the Board believes that it will serve to enhance the Group’s profile in the country, as it is intended to create new jobs within the wood-processing industry, to conserve the country’s forestry assets, to prevent illegal logging, and to increase export revenues.
It may also present new supply, logistics and shipping opportunities for AEG, which sources all of its raw timber, primarily waste wood and forestry thinnings, from the official Ukraine State Agency of Forestry Resources (SAFR).
Richard Spinks, CEO of Active Energy Group, commented:
“My co-Directors and I remain very confident in the long-term viability and continued success of the Group’s Ukrainian wood chip operations – which reported revenues of US$17.395 million in 2014, an eleven-fold increase over the previous year.”
“We are fully-committed to continuing with our expansion plans to meet the greatly-increased demand for our products from our Turkish MDF manufacturing customer base.”
“Moreover, reports from the ‘Association of Woodworking and Harvesting Enterprises of the Western Ukraine’ state that 40% of the raw wood used at wood-processing plants goes to waste, which could be utilised as raw material for Biomass for Energy (BFE) fuel pellet production; an industry sector which AEG has been actively exploring and on which we presented a Public-Private Partnership proposal to the Ukraine government in May 2015.”
Active Energy Group Plc is a London Stock Exchange AIM-listed company (AIM: AEG.L). Headquartered in the UK, it is a fast-expanding international business, which has experienced exceptionally strong growth and diversification into complementary industry sectors since the current management team assumed responsibility in mid-2012.
The Group has considerable expertise across the entire timber industry supply chain – from forest to finished product.
Its four specialist business divisions, which reflect its knowledge and experience and which work together to maximise commercial opportunities, focus on providing products and services to specific global market sectors:
· Forestry & Natural Resources Development and Management
· Wood Chip for Medium-Density Fibreboard (MDF) Manufacturing
· Wood Chip for Biomass for Energy (BFE) Power Generation
· Second Generation Biomass for Energy (BFE) Fuel Solutions and Systems
Company website: www.active-energy.com
