Active Energy Group (LON:AEG) – CORP; Issue of Convertible Loan
Market Cap: £20.0m; Current Price: 2.5p
Issue of £11.57m convertible loan, and commercial update
Active Energy, international developer of renewable energy, forestry management and timber processing, has raised £11.57m (US$14.15m) (gross) through the issue of convertible loan notes to new and existing investors. The terms are:
5-year term, interest at 8.00% per annum payable quarterly in arrears.
To be listed on the Channel Islands Securities Exchange.
Convertible into AEG shares at a 30% premium to 2.535p, the 10-day volume-weighted average price (VWAP) immediately prior to the date of announcement.
Redeemable by AEG after three years.
Security trustee is Welbeck Capital Partners LLP.
The funds raised will be used primarily to fund the construction of AEG’s first commercial-scale plant for production of its CoalSwitch biomass fuel. CoalSwitch is AEG’s proprietary 'drop in' biomass fuel designed seamlessly to replace the use of coal in existing coal-fired power stations without the need for retrofitting, thus extending the life of these utilities.
AEG reports that, “numerous utilities and major coal fired power stations across the world have requested delivery of commercial-sized batches to test in their facilities”, and, that it is “seeking to secure binding contracts with companies to secure feedstock arrangements which may include empty fruit bunch and palm trunks in Asia, low-value hardwoods and mill waste streams in Alberta and fir tree and sawmill residues elsewhere in Canada.”
AEG targets commissioning of a commercial CoalSwitch plant during 2017.
NORTHLAND CAPITAL PARTNERS VIEW: AEG is positioning CoalSwitch to meaningfully contribute to the transition of coal-fired fossil fuel generation to renewable sources, notably making use of ‘waste’ biomass such as sawmill residue, wood from demolition, waste palm trunks or fruit branch waste. The fund raise is designed to accelerate supply of CoalSwitch product in sufficient scale to meet the interest and commercial-scale demand AEG is receiving.