Business
Acquisition of Lumberton Site & Fundraise
Acquisition of Lumberton Site & Fundraise.
About this update from Active Energy Group Plc
[{"type":"text","content":"\n \nRNS Number : 6756R Active Energy Group PLC 04 March 2019 \n\nActive Energy Group Plc / EPIC: AEG / Sector: Alternative Energy\n \n4 March 2019\nActive Energy Group Plc ('Active Energy', 'AEG'or the 'Company')\n \nAcquisition of Lumberton Site & Fundraise\n \nActive Energy, the London quoted renewable energy and forestry management business focussed on biomass, is pleased to announce that further to the Company's announcement of 11 January 2019, it has entered into an agreement (the \"Agreement\") with Alamac Holdings LLC (\"Alamac\" or the \"Vendor\"), a privately owned US entity, to acquire an industrial site in Lumberton, North Carolina (the \"Acquisition\"). The site will become the new base for all Active Energy's CoalSwitch™ operations in the US and house the first permanent production facility for CoalSwitch.\n \nThe site is strategically located close to AEG's joint venture partner Georgia Renewable Power LLC (\"GRP\") and is also in a prime lumber district in the US. It includes up to 415,000 sq ft of covered factory space and circa 151 acres of surrounding land (the \"Lumberton Site\") and is being purchased for a total consideration of US$3,330,000 (£2,511,312).\nCompletion of the Acquisition is subject to certain customary conditions which both AEG and Alamac expect to be satisfied during March 2019.\n \nTo part fund the Acquisition, the Company has completed a fund raising of US$3,413,000 (or £2,573,906) (before expenses) through the subscription of convertible loan notes (\"CLNs\") by new and existing institutional investors (the \"Fundraise\"). The CLNs, which are being issued as a Series B to the existing CLN instrument ( \"Series B CLNs\") that the Company issued on 15 March 2017, have a maturity date of 15 March 2022 and accrue interest at 8% per annum, payable quarterly in arrears. In addition, the Series B CLNs will be listed on The International Stock Exchange.\nMichael Rowan, Active Energy Chief Executive said, \"We continue to make progress on delivering our first commercial CoalSwitch™ product to market, which is now our main focus. The acquisition of the Lumberton Site is part of this strategy and I believe the Fundraise is an endorsement of our drive to prioritise near term revenue generative opportunities. I am delighted that we have receiv...