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(Alliance News) - Active Energy Group PLC on Tuesday said it has agreed to take total control and ownership of the saw mill and saw log export activities at its industrial site in Lumberton, North Carolina.
At present, the biomass based renewable energy company's Lumberton activities operate through a joint venture with partner Renewable Logistics Systems LLC. However, under the acquisition agreement, Active Energy is to take control of the joint venture before consolidating all Lumberton activities via subsidiary Active Energy Renewable Power LLC.
Active Energy will pay USD350,000 to Renewable Logistics Systems via the issue of 64.9 million new shares.
Shares in Active Energy were up 3.7% at 0.42 pence in London on Thursday.
In addition, all of the former joint venture arrangements between the two companies are to be cancelled. This includes a long-term lease agreement and rental agreement. Active Energy said the seal will result in "a simplified corporate structure".
Roger Richardson Junior, currently a director and shareholder if Renewable Logistics Systems, will become chief operating officer of Active Energy Renewable Power.
Active Energy Chief Executive Michael Rowan said: "I am delighted to announce this value accretive transaction. [Active Energy] will become the 100% owner and operator of the existing sawmill and saw log export activities at Lumberton. The initial joint venture with [Renewable Logistics Systems] was an important milestone and with their invaluable assistance, operations have commenced at Lumberton.
"These existing operations are already generating revenues for AEG and with the team, headed by Roger Richardson Junior, we believe this transaction will provide a solid foundation for the group's future growth at Lumberton. The Transaction will further complement our existing CoalSwitch and black pellet fuel business activities, generating additional customer access and greater market presence in North Carolina to ensure AEG benefits from low cost feedstock within the region."
By Anna Farley; annafarley@alliancenews.com
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