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Active Energy raises £1.5mln to move forward with recently awarded forestry contracts

The placing will see 149.5mln shares issued at 1p per share with warrants attached.
shavings
CoalSwitch uses timber as a coal substitute

Active Energy Group PLC (LON:AEG) is to raise just under £1.5mln to kick-start its forestry operations in Canada.

Last week, the company published confirmation that it had been awarded management contracts for two huge tracts of forest in Newfoundland and Labrador.

The licences allow the group to cut 100,000 cubic metres a year, which it will use to provide the raw material for its biomass technology, CoalSwitch.

This is an alternative fuel source for coal-fired power stations and production through a joint venture with Georgia Renewable Power, anticipated to start in early 2019.

Michael Rowan, chief executive, said: “Whilst I acknowledge now is not the optimum time for the company to be raising funds given the turbulence in the wider market and with Active Energy's trading in recent weeks, it is key for us to quickly leverage the commercial opportunities available and move towards a cash generative position.” 

The placing will see 149.5mln shares issued at 1p per share with warrants attached.

Management including Rowan subscribed for 9.5mln placing shares.

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Active Energy Group PLC Timeline

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