(Alliance News) - Shares in Active Energy Group PLC on Tuesday more than trebled after it said it would receive USD1.65 million from Player Holdings LLC after striking an agreement.
Shares in Active Energy leapt by 0.78 pence, 242%, to 1.11p each on Tuesday in London.
The London-headquartered biomass-focused renewable energy company said it had entered into a settlement agreement with Player Holdings LLC, and its subsidiaries MaineFlame Inc, Player Design Inc and Tyler Player in regard to former activities for the potential production of CoalSwitch at PDI's facility as Ashland, Maine.
Active Energy said PDI has agreed to pay USD1.65 million cash by no later than Tuesday.
In return, Active Energy said it would will transfer the ownership of certain production equipment, not essential to future CoalSwitch production, currently located at the Ashland Facility and elsewhere in Maine to PDI.
The book value of the transferred assets as at June 30, 2023 was USD2.5 million.
PDI will retain the ownership of its intellectual property created and developed in respect of specific know-how for its production methods at the Ashland facility, and PDI will retain rights to own, develop, license, and use this specific know-how.
But Active Energy said these rights do not infringe upon its current intellectual property and PDI is not permitted to use any of Active Energy's existing CoalSwitch trademarks nor use any of Active Energy's existing proprietary intellectual property in the US, Canada or worldwide.
Active Energy retains complete ownership of all its original patents on the steam explosion process, including all production knowledge acquired from the former production activities at the Ashland Facility applicable for its future production methods for biomass products.
By Jeremy Cutler; Alliance News reporter
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Active Energy (AEG)