Gravendonck Private Foundation, a long-time backer of Active Energy PLC (LON:AEG), has increased its equity stake in the renewable energy specialist.
Active’s major shareholder is to convert US$1.02mln of existing debt into equity.
Gravendonck will receive 30mln shares at an assumed price of 2.7p a share.
The price was arrived at by taking a 60-day volume-weighted average share price.
The conversion takes Gravendonck’s stake up to 29.97%, and reduces Active’s debt obligation to the company to US$580,000.
“Not only does this further strengthen our balance sheet, but it sends a clear signal to the market that the Active Energy investment proposition is gaining momentum,” said Richard Spinks, chief executive officer of Active Energy.
“With profitability targeted across all three divisions by the end of 2017, and a highly active year anticipated with the commercialisation of AEG’s revolutionary CoalSwitch product, which can be mixed at any ratio with coal, or completely replace coal in existing coal powered fire stations globally without the need for expensive retrofitting – the value accretion potential for investors is clearly evident,” he added.
Shares in Active Energy currently trade at 2.85p, down 0.23p on the day.