(Alliance News) - Active Energy Group PLC on Tuesday said it identified working capital issues in a recent strategic review.
Active Energy shares were down 34% to 0.32 pence each in London on Tuesday afternoon.
The London-based biomass renewable energy company undertook a strategic review of its entire business after receiving a USD1.7 million settlement in March. The agreement with Player Holdings LLC was in regard to former activities for the potential production of CoalSwitch at Player's facility in Ashland, Maine.
CoalSwitch is a next generation renewable biomass fuel developed by Active Energy, and as part of the review options relating to its production and funding were evaluated by the company.
It concluded that under the existing structure, it would not be possible for the company to raise sufficient working capital to build and operate the production facility within the desired time frame.
In light of these findings, the board has decided it is appropriate to find a buyer for the CoalSwitch patent and accompanying assets to ensure production of a fuel they believe will transform the industry can go ahead.
By Elijah Dale, Alliance News reporter
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Active Energy (AEG)