TIDMAEG
RNS Number : 4082D
Active Energy Group PLC
26 June 2019
Active Energy Group Plc / EPIC: AEG / Sector: Alternative
Energy
26 June 2019
Active Energy Group Plc
('Active Energy', 'AEG' or the 'Company')
Two Lease Agreements Signed for Lumberton
Active Energy, the London quoted renewable energy business
focussed on biomass, is pleased to announce that it has signed two
lease agreements at its recently acquired commercial plant in
Lumberton, Robeson County, North Carolina (the 'Lumberton
Site').
Highlights
-- Lease agreement signed with Tencate Protective Fabrics
('Tencate'), an existing tenant at the Lumberton Site, including an
agreed increase in rental income.
-- Lease agreement signed with Renewable Logistics Systems, LLC
('RLS') including land within the Lumberton Site to be used for saw
logging and wood processing, to complement the business activities
relating to the Company's CoalSwitch(TM) and biomass
operations.
-- Lease agreements provide the Company with an immediate source
of revenue as it advances its CoalSwitch(TM) and biomass operations
at the Lumberton Site.
-- Construction of five tonne per hour CoalSwitch(TM) plant to commence imminently.
Michael Rowan, CEO of Active Energy Group, said, "Our intention
for the Lumberton Site was to create a strategic hub to house the
first permanent CoalSwitch(TM) production facility, in addition to
generating other incremental sources of revenue for Active Energy,
whilst delivering a positive impact on the local economy. These
lease agreements not only demonstrate how the Company is committed
to supporting local business but also provide AEG with a valued
source of revenue that will assist in the future development of the
Lumberton Site. Notably, the agreement with RLS enables AEG to
commence a saw logging operation at the Lumberton Site and presents
additional complementary opportunities to the Company."
Key Terms of Lease Agreement with TenCate
-- TenCate is an established provider of high-quality industrial
safety fabrics for a range of industries including utilities and
infrastructure, energy, oil and gas, chemical, metal, steel and
mining, and manufacturing.
-- Two-year lease agreement that will automatically renew for a
further 12-month period unless written notice is provided within 90
days.
-- AEG to provide adequate staff to oversee delivery and storage
of fabric on behalf of Tencate, in addition to specified required
equipment.
-- Rent agreed for an annual sum of US$204,000 to be paid to the Company.
Key Terms of Lease Agreement with RLS
-- RLS is a regional supplier of saw logs, pulpwood and wood
chips for industrial and domestic use.
-- Three-year lease agreement, which will formally commence on
15 July 2019, with the opportunity to extend the agreement for a
further two years.
-- Rent agreed for an annual total sum of US$60,000 to be paid to the Company.
-- The lease provides for an increase in acreage use from an
initial 5 acres up to 30 acres during the term of the lease with a
correspondent increase in rental income.
Related Party Transaction
Mr Antonio Esposito, the Company's Chief Operations Officer, is
a former director of RLS. In addition, when aggregated with his
wife's holding, Mr Esposito is the beneficial holder of more than
30% of the shares in RLS, with voting rights.
As such, Active Energy's lease agreement with RLS constitutes a
related party transaction in accordance with AIM Rule 13. Michael
Rowan and Simon Melling are considered to be independent Directors
for these purposes and, having consulted with the Company's
Nominated Adviser, consider the terms of Active Energy's lease
agreement with RLS to be fair and reasonable insofar as the
Shareholders are concerned.
Furthermore, Antonio Esposito has been excluded from any of
AEG's commercial negotiations with RLS and is precluded from voting
on any matters relating to the lease agreement between AEG and
RLS.
Additional Information on the Lumberton Site
The Lumberton site includes all requisite ancillary facilities
for the production of CoalSwitch(TM), including all relevant power
supplies, water treatment facilities, an analysis lab and offices.
The Directors believe that the size of the Lumberton Site ensures
the opportunity for significant expansion of the initial
CoalSwitch(TM) plant via the construction of additional
CoalSwitch(TM) production facilities targeting capacity of up to
400,000 tonnes per annum over the next 2 years. Furthermore, the
Directors expect that AEG will benefit from additional near-term
commercial opportunities including complementary biomass, saw
logging and other opportunities in the Lumberton and North Carolina
areas.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
Enquiries & Further Information:
Website LinkedIn
www.aegplc.com www.linkedin.com/company/activeenergy
--------------------------------------
Enquiries
Active Energy Group Michael Rowan CO SBP +44 (0) 20
Plc Chief Executive Officer (Active 7236 1177
Energy)
Antonio Esposito
Chief Operations Officer
(Active Energy)
--------------------------------- ----------------------------
SP Angel Corporate David Hignell / Lindsay Mair Office: +44 (0)20
Finance LLP / Jamie Spotswood 3470 0470
Nominated Adviser
and Broker
--------------------------------- ----------------------------
St Brides Partners Melissa Hancock / Gaby Jenner info@stbridespartners.co.uk
Financial PR Adviser Office: +44 (0) 20
7236 1177
--------------------------------- ----------------------------
About Active Energy Group:
Active Energy Group plc is a London listed (AIM: AEG) renewable
energy company that has developed a proprietary technology which
transforms low-cost biomass material into high-value green fuels.
Its patented product CoalSwitch(TM) is the world's only drop-in
biomass fuel that can be mixed at any ratio with coal or completely
replace coal in existing coal-fired power stations without
requiring plant modification.
Active Energy Group's immediate strategic focus is the
production and commercialisation of CoalSwitch(TM) and
SuperFuel(TM), a low emission CoalSwitch(TM) blend that utilises
waste coal fines.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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