LONDON (Alliance News) - Renewable energy & forestry management firm Active Energy Group PLC said Friday it had raised GBP1.5 million through a share issue in order to progress its projects.
Active Energy issued 149.5 million shares at 1.0 pence each, raising GBP1.5 million from new and existing investors. Attached to these shares are warrants which entitle investors to one warrant for every four shares held. The warrant price if 1.75p and have a life of 12 months.
Shares in Active Energy closed flat at 1.40p on Friday.
In addition, some creditors have accepted 15.5 million shares in lieu of cash. This is in return for services provided.
The funds raised will be used to executive its plans under the joint venture with Georgia Renewable Power LLC. This is expected to see production of its wood fibre fuel product CoalSwitch from its five tonne per hour plant by early 2019.
In addition, the money will help support commercial planning for its Newfoundland plant installation.
"Recent developments have served to propel Active Energy towards near-term visible revenues and position it to advance its longer-term expansion strategy," Active Energy Chief Executive Officer Michael Rowan 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", Rowan added.
"I am confident that our base case remains strong: we believe we have a ground-breaking technology, coupled with expanding global partnerships for our products and a defined path to revenue generation," Rowan continued.
After admission - expected next Thursday - Active Energy will have 1.20 billion shares outstanding.
Active Energy (AEG)