Business
Acquisition of 100% interest of lumber activities
Acquisition of 100% interest of lumber activities.
About this update from Active Energy Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 1319I\n Active Energy Group PLC\n 31 March 2020\n \n \n \n Active Energy Group Plc / EPIC: AEG / Sector: Alternative Energy\n 31 March 2020\n Active Energy Group Plc\n ('Active Energy', 'AEG', the 'Company' or the 'Group')\n \n Acquisition of 100% interest in all joint venture lumber activities at Lumberton\n \n Active Energy, the London quoted international biomass based renewable energy business, is pleased to announce that further to the Company's announcement of 24 July 2019, it has entered into an agreement (the \"Acquisition Agreement\") with its joint venture partner Renewable Logistics Systems LLC (\"RLS\"), whereby AEG will secure 100% control and ownership of the saw mill and saw log export activities based at AEG's industrial site in Lumberton, North Carolina (\"Lumberton\") (the \"Transaction\"), which are currently operating through a joint venture. \n \n Pursuant to the terms of the Acquisition Agreement, AEG will acquire control of the joint venture, Renewable Energy Systems, LLC ( \"RES\") and then consolidate all the existing lumber activities at Lumberton through Active Energy Renewable Power LLC, (\"AERP\") a wholly owned subsidiary which was incorporated in North Carolina in October 2018.\n \n Overview and Key Terms of the Acquisition Agreement:\n \n \n · All assets (including existing customer contracts) previously associated with AEG's existing joint venture, including plant and equipment, inventory and goodwill will be transferred to AERP.\n \n ·As consideration, AEG and RLS have agreed for AEG to pay US$350,000 for the outstanding equity interest in RES. This is being executed by the issuance to RLS of 64,863,412 new ordinary shares of 1p in AEG (\"Ordinary Shares\") at their nominal value of 1p per Ordinary Share on the closing date (the \"Consideration Shares\"). The total consideration is subject to certain closing adjustments including the provision of additional consideration of either cash or additional Ordinary Shares. This will be finalised by no later than the Transaction's Long Stop Date of 30 April 2020.\n \n · All former joint venture arrangements between AEG and RLS, including the long-term lease agreement and the rental agreement, details of which were announced by AEG on 26 June 2019, will be cancelled resulting in a simp...