The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
@Kivitwo the RNS was meant for First Property Group. Allenby Capital are their broker, same as AEG.
https://www.lse.co.uk/rns/FPO/replace-dividend-declaration-cceqp8gs7kenlwb.html
@Magnet8 interesting few months ahead, perhaps..
* The new appointment hinting at setting AEG up for rapid expansion.
* Player paying for & operating the new plant. Which was due for commission by end of Q1, however, I noted in Rowan's words recently, commission by end of Spring. which is end of May! maybe a mistake on his part but perhaps there is a some (another) delay.
*Fulfilling the 3,000 tonne order would be encouraging
*The next stage of Pacificorp test being completed would be great. Assuming they were happy with the findings. If I remember correctly the next test is actual co firing, whereas the last test was for friability (grinding of the product into a very fine powder).
Fingers crossed tightly
Not according to this:
https://www.lse.co.uk/ShareShortPositions.asp?shareprice=AEG&share=Active-Energy
I imagine they are following their promotion strategy, although they don't have a product to sell yet.
For the share price to move it will need a flurry of buys, and some milestone news.
There was an update on Twitter a few days ago, a bit vague but appears to show a Coalswitch plant in the making.
https://twitter.com/aegplc/status/1576814319366701057/photo/1
I can see on IBKR that they purchased 1.97m shares on the 20th July, so they may just have used the wrong form to declare ownership.
The 1.5m trade yesterday & the 3m today were TNCP. Non Price Forming Transactions. It's not a purchase or sale & doesn't affect the price. I think a transfer between entities.
It's a disclosure of over 1% of shareholdings. 3:30pm within 10 days of reaching threshold is cut off for disclosing.
https://www.thetakeoverpanel.org.uk/wp-content/uploads/2022/04/Summary-of-provision-of-Rule-8-July-2021189117.3.pdf?v=21May2018#:~:text=Under%20Rule%208.3(a)%20of,in%20cash)%20must%20make%20an
It will allow the stock to be traded on the OTC market.
There will be a fundraise, they've openly disclosed that. Wether it is issuing more shares or a loan remains to be seen.
I can't remember the cost of the 5tph plant but for the proposed build in Maine, they have a lot of equipment already, yet will still need to raise additional funds to the sale of Lumberton.
My guess is the permit applied for is minimum 10tph.
Potential licensees will want to see an actual working plant without issues before they fork out $2m plus additional $ for plant build. Something AEG have not been able to manage yet.
No one will invest in a license if they don't know for sure they can produce Coalswitch without interruption.
It's usually a while :D ..next steps are, approval in principal for the Maine permit, sale completion of Lumberton (hopefully), granting of full permit (based on having funds available to build said plant). We'll see if the 4m is enough to complete the build. Then onto building the plant..
Proposed ban on Russian coal imports valued at €4 billion. Could prove an interesting development if it's sanctioned & lasts long term.
1 – An import ban on coal from Russia, worth €4 billion per year, cutting another important revenue source for Russia.
https://twitter.com/vonderleyen/status/1511322652446711810
I wouldn't expect anymore until they begin producing / supplying in volume again. There's a lot of uncertainty around the actual volumes produced in 2021.
The Pacificorp test was part one of a number of tests. It was just for friability, which is the grinding to a powder, or rather how it compares to coals friability. Coal is first grinded to a power before burning in a furnace to ensure maximum burn.
Hard to know what their roadmap looks like now.
I was thinking myself, maybe Lumberton is a dead horse and they'd messed up the relationship with NCDEQ, given the complete lack of chatter surrounding it.
I got in touch with NCDEQ for this reason, and they've confirmed receipt of the permit modification application. It's just on hold until additional emissions data is provided/ reviewed.
So that give me hope that it's still in the running. Makes sense that it would be used eventually, given the cost to build it etc.
I reckon it will used as collateral to fund the Maine plant. Then it will be, hopefully, get permit approved in Lumberton and move to complete that plant.
From RNS on 09/12,:
1) All PDI shares to be issued in Tyler's name (375,940,001)
2) $300k (£230k) cash investment from Tyler
3) $300k in lieu of future payments
4) $400k wind down of CSW2
$1m total
https://www.lse.co.uk/rns/AEG/proposed-fundraising-and-subscription-aa1xcvt24y8a1m2.html
Player Design has, on 8 December 2021, entered into a settlement and subscription agreement with the Company pursuant to which Player Design has subscribed for 375,940,001 Subscription Shares. The Subscription, settled at the Issue Price, comprises the following amounts:
a) a $300,000 cash subscription by Player Design in the Company;
b) $300,000 in lieu of an advanced payment by AEG for the performance by Player Design in respect of future engineering services and agreed within the overall budget for the completion and construction of the Ashland Facility; and
c) $400,000 in settlement of all liabilities in relation to the unwinding of the joint venture between the Company and Player Design (including, in particular, the transfer by Player Design of 100% of its shareholding in the joint venture company, CSW2 Maine LLC, to the Company established in April 2020 initially to develop, build and operate a CoalSwitchTM production plant at Ashland). Following completion of the Subscription Agreement the Company will be the 100% shareholder of CSW2 Maine LLC.
The total amount of the Subscription is $1.0 million (approximately £0.75 million) and all of the Subscription Shares will, pursuant to a direction by Player Design under the terms of the PDI Agreement, be issued in the name of Tyler Player.
The budget has been completed for the new plant, again no mention of the $ amount. It is also mentioned that parts from Maine & Lumberton will be utilized. Again, is this the end of Lumberton??
It would appear that holding onto Lumberton is purely a means to secure the 2nd round of financing to have the Maine permit approved & fund the build. Perhaps I'm wrong on this, but there doesn't seem to be much mention or planning around Lumberton.
Lumberton is being valued at circa $4m which I imagine will be sufficient to complete the Maine build.
The last point I notice is the company set up for the joint venture, CSW2 Maine LLC. It states it was set up for the purpose of JV in March 2020! Without reviewing RNS, my recollection is that this was something that took place in Q4 2020. Again, I may be wrong here, or this may be a typo. Perhaps someone can weigh in here.
So, is this a positive or a negative?
Well, it was essential after Rowan more or less derailed the company, otherwise we would have been declared bankrupt. To go on;
1) Ultimately I view it as a long term positive given that Player design plan to invest $750k & Tyler himself another $230k.
This is very positive, and I view his involvement as our saving grace. I'd likely have exited my position without their involvement.
2) The AEG directors buy in is insignificant.
3) The certainty of Lumberton is seriously up in the air.
4) Additional funds required for plant build, likely attainable.
5) AEG looking more long term and not short term, mini plants. Suggests a change in thinking (probably driven by Player)
So overall I think it's a positive given our current position. It will however be a long 6 months in my opinion, with little share price movement. If it were not for Rowans antics and deceitfulness surrounding Lumberton, we would likely have made groundbreaking highs and all be jumping for joy (except those who divested before now) .
I'll remain invested for now, tentatively. Fingers crossed this comes good for us all.
Was the recent RNS a positive thing?
First off, this fundraise was more to do with paying the directors future salaries than anything else.
The firm placing is for just that, and if no more fundraise is successful, that's all it will be used for, for the most part.
The only positive is that Player will end their 50/50 joint venture partnership & become invested in the company in a material manner. £750k from Player design & £230k from Tyler himself, this I do see as being significant.
£61k purchase by directors. This I believe should not have been allowed as it was Mr. Rowans actions this year that resulted in the price tanking 90% and him and his cronies benefit by way of moping up bargain basement priced shares. Albeit, £61k invested across 5 directors at an average of £12.2k is embarrassing and is nothing to sing about. It does not show confidence in the company.
The £3m raise is to be used for engineering & design, permit application, ordering of long lease items (whatever they are) and general working capital, in other words, Rowans salary etc.
Not a whole lot being done with that £3m.
The mention that the failing of a successful fundraise may result in a potential loss of all or some of investors capital.
This I imagine is a legal requirement to state. Also, it acts as scaremongering to entice shareholders to vote in favour of the conditional placing.
There will be a 2nd fundraise or financing in H1 2022. No doubt about that. Whether it will be more share dilution or financing with the Lumberton plant as collateral remains to be seen.
Key data acquired:
"More importantly, the Company acquired valuable manufacturing and product data which provides all key information to permit the construction of larger scale CoalSwitch production facilities."
**This would lead me to believe the required data for the Lumberton permit is available. If so, is Lumberton now a dead horse? or am I reading this wrong? **
"The Company is also receiving positive feedback on CoalSwitch™ test analysis being undertaken by potential customers. "
This is extremely vague & typical of AEG. If there is no solid news or facts to report, they will add fluff to RNS to make bad news more palatable. The common 'crap sandwich' to put it politely.
As I'd eluded to previously, they have distanced themselves from the current makeshift plant in Maine & intend to build a 70k tonne per year plant. This is a little disconcerting...
Why such a large plant that cannot currently be financed?
Surely proceeding with the current plant in Maine would mean less capital required to build & hence less capital required to secure the relevant permit! (do they really think we are stupid?). Furthermore, a operational plant in Maine should quickly lead to a permit grant in Lumberton, IF Rowan hasn't completely blown it with them by way of his antics earlier this year that left AEG stranded.