Active Energy (LON:AEG) has raised just over £2mln to boost capacity by a third at AEG WoodFibre, its woodchip processing operations in Ukraine.
Funds raised will be used at the Yuzhny Port in Ukraine to buy and install a new fixed chipper that will take capacity to around 4,000 tonnes of raw material a day. More mobile chippers will also be acquired.
Shares were placed at 2.65p, a 16.5% discount.
Richard Spinks, chief executive, said: “Specifically, we plan to complement the fully-automated hardwood production line, which is already capable of processing approximately 3,000 tonnes of raw material per day, with the installation of a new 1,000 tonne per day softwood production line by the end of 2016. “
Active Energy has three divisions: forestry management business AEG TimberLands wood chip for MDF supplier AEG WoodFibre and AEG CoalSwitch coal replacement fuels.