Thinks to remember here for 20195 Apr 2019 21:02
Thinks to remember here:
AEG in my assessment will not need to raise money
in the short term.
If you look at the CLNs that have been used to purchase the Lumberton site - you will see that the Company has completed a fund raising of US$3,413,000 but made a cash payment of US$1,080,000 for the purchase and the rest has been taken up by Alamac by way of CLN.
The point being AEG have $2.3M in the bank. Yes they are paying interest quarterly but you would hope that this means that they are confident that with the coalswitch plant up and running they can service the interest and begin to create revenue.
Long story short, They do have c$2.3m in the bank and whatever remains from the placing in December of £1.5M so they should be fine going forward.We have coalswitch orders that AEG will service from Lumberton. As you may recall the reason for acquiring Lumberton is that it is right next door to our joint venture partner Georgia Renewable Power who have in excess of 2m tons of biomass for us to use per annum.
So we have a plant, we have a massive site that we can grow into for years to come, we have cash in the bank and we have clients and feedstock. Also the convertible loan notes cannot be converted for one year so there is no dilution coming. Also the company can convert and not Alamac - this is again a very good sign that AEG are very confident that they have cash coming in.
The crazy thing is anyone investing in AEG now, has the potential to see 10p a few years down the line. Us long term holders will be grateful to be back in the black given the horrendous journey but the heavy heavy lifting and open heart surgery has been carried out now and at this price there is real value.
If i were stumbling on AEG right now for the first time, this would be a massive buy - as the risk return is literally life changing. Please have a look at the CLNs.
We also are due at some point confirmation on the EU grant with our joint venture partner Cobant where we have been certified to be a super fuel allowing us to supply coalswith into the domestic market. Poland is a country where 30% of households still burn coal so this is a massive market worth millions.
Newfoundland - Richard is working on his side of the business and his investor has committed to invest $20m to get this going. I suspect as some have said that AEG will sell Timberlands to Richard as this would allow Richard to run his won business and AEG would get a significant cash windfall as AEG owns Timberland and therefore the permits. Lets also remember that Timberlands owes AEG $15m so there is lots going on in the background here and yes it has been a tough slog but my view remains this is the year where we start producing coalswitch and we have the cash, plant and feedstock and partners and customer to do this so stop worrying.
All for the bargain price of £5m Mcap.
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