Active Energy Group PLC (AIM:AEG, OTCQB:ATGVF) is putting its CoalSwitch assets up for sale after completing a review of the business.
The assets comprise three parts: the company's original patent and trademark portfolio on the steam explosion process to produce its high-energy density black biofuel pellets; all production and test data know-how acquired from the initial production activities at a facility in Maine that may be applicable for the future production methods for biomass products; and all relevant customer test data.
The AIM-listed outfit said management is looking to begin talks with prospective parties “at the earliest opportunity” but there is no guarantee that a deal will be struck.
If the board receives an acceptable offer for the CoalSwitch assets, such a sale is likely to require the approval of shareholders at a general meeting of the company, and if passed would result in the company becoming a cash shell.
The review was carried out after agreeing a settlement deal with US-based Player Design last month, resulting in a $1.65 million cash payment to Active Energy to recoup funds earmarked for the development of the Ashland facility.
Focusing the review on production and funding avenues for CoalSwitch, the board came to the conclusion that the company is unable to amass adequate working capital to initiate CoalSwitch production in a timely manner.