Active Energy PLC (LON:AEG) has raised £1m in an oversubscribed placing to fund its biomass fuel execution strategy.
The company issued shares at 3p to new and existing investors.
READ: Active Energy adds Europe to markets for CoalSwitch with Polish deal
The net proceeds of the placing will fund the execution phase of the group's business plan which is focused on developing its forestry management operations and commercialising its revolutionary coal replacement fuel, CoalSwitch and related products including PeatSwitch and the company's coal blended SuperFuel.
The company is now focused on executing commercial opportunities in Canada, the US and Europe and the management team is being reorganised to deliver on this strategy.
In particular, Richard Spinks will now lead the development of the forestry division, primarily in Canada, supported by Antonio Esposito a forestry professional with over 20 years' experience.
This division is focused on re-invigorating forestry businesses through the implementation of modern forestry practises and the construction of CoalSwitch plants that should significantly increase the economics of timber businesses.
"We were delighted with the positive response to the placing as existing shareholders and stakeholders recognise the importance to Active Energy of the forestry business in Canada and the significant commercial potential of CoalSwitch and its derivative products,” said executive chairman Michael Rowan.
“We remain highly positive about the future of our product portfolio and the transformational effect which the group believes this will have on the market for biomass power generation.”