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(Alliance News) - Active Energy Group PLC on Friday said it has agreed with its bondholders that it will not make cash coupon payments until September 2020.
The agreement is in relation to the convertible bond issued in 2017. The bond has an interest rate of 8% per annum payable quarterly in arrears, and a maturity date of March 14, 2022.
The London-based renewable energy company said the deferral of payments will allow the company to conserve around GBP1.2 million. The amount will go towards activities at its Lumberton site in the US state of North Carolina, which include the construction of a five-tonne per hour CoalSwitch plant.
CoalSwitch is a wood fibre fuel product.
Its bondholders will convert 67,687 bonds into new shares at a price of 1 pence per share, resulting in the lenders being issued 6.8 million shares. Following admission of the new shares, Active Energy share capital will comprise around 1.2 million shares.
"The board has worked hard to secure these revised financial arrangements and is grateful for the demonstrable support from the bondholders. At this stage of our development plans, we are fully focused on optimising the use of capital to develop all the revenue-generating opportunities at Lumberton and the development of CoalSwitch and the next generation of biomass pellets," said Chief Executive Michael Rowan.
The stock was trading 21% higher at 0.64 pence each on Friday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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