Active Energy Group Update
Sale of the Lumberton site for $4.65 million
Alpha Prospects Ltd, the investment management company focussed on companies with fast growth prospects, is pleased to inform shareholders of an update issued today by its investee company Active Energy Group Plc (‘Active Energy’, ‘AEG’, ‘the Company’).
“Active Energy, the London quoted international biomass based renewable energy business, is pleased to announce it has entered into a sale and purchase agreement with Phoenix Investors LLC (“Buyer”) for the sale of its Lumberton site in North Carolina (the “Lumberton Site”).
- Sale of Lumberton Site for gross cash proceeds of $4.65 million (before expenses)
- Net proceeds of the sale will be used for the development of the Company’s CoalSwitchTM production facility at Ashland, Maine
- Active Energy’s immediate strategic focus is on completing its first CoalSwitchTM production facility in Ashland, Maine (the “Ashland Facility”)
Sale of the Lumberton Site
The funds raised by the Company in December 2021 have allowed it to commence work on permitting for the Ashland Facility and to complete engineering and design activities. The net proceeds from the sale of the Lumberton Site, which had a net book value as at 30 June 2021 of $4.0 million, will allow the Company to further its development of the Ashland Facility.
AEG is seeing unprecedented enquiries for the CoalSwitch™ product following the independent test results demonstrating the superior qualities of CoalSwitch™ over both coal and white pellets. The completion of the Ashland Facility will allow the Company to meet the growing potential demand for this next generation fuel from both power generation markets and other hard-to-decarbonize industries.
Phoenix Investors LLC is a US-based commercial real estate firm, the core business of which is the revitalisation of former manufacturing facilities throughout the United States. The Lumberton sale is subject to a 75-day due diligence and closing period, with closing of the transaction and receipt of sale proceeds expected in June 2022.
Prior to the completion of the sale, Active Energy will be moving certain CoalSwitchTM equipment from the Lumberton Site to the Ashland Facility for deployment in the continued development of the CoalSwitch™ plant at the Ashland Facility.
Michael Rowan, CEO of Active Energy, said:
“Based on the accelerating level of enquiries from prospective customers, we need to have commercial production of CoalSwitch™ as soon as possible. The strategic focus is upon acquiring and developing sites in the US and Canada that give us the quickest pathway to production.
The first priority for AEG is to begin commercial production of CoalSwitchTM at the Ashland Facility as quickly as possible. Reinvesting proceeds from the sale of the Lumberton Site into our Ashland Facility allows AEG to accelerate this process.
Commercial production at the Ashland Facility is critical not only because AEG can meet customer demand, but also because the environmental data from both the operating facility and resulting fuel will accelerate the permit process in other locations.
Prospective commercial partners from the US Southeast are keen for AEG to develop commercial production facilities in the region and AEG will work toward this once the activities at the Ashland facility progress.
Current feedback confirms CoalSwitch™ has a significant role in the transition toward the zero-carbon economy and future energy security. We look forward to delivering CoalSwitch™ to customers.”
The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310.”