LONDON: In a recent business update, Active Energy, a leader in the biomass-based renewable energy sector, has announced its engagement in strategic discussions for the potential sale of its CoalSwitch® assets. Following the announcement on April 9, 2024, the company has received several proposals which are currently under the Board’s review.
The Board remains optimistic about CoalSwitch®, a next-generation renewable biomass fuel, and its ability to revolutionize the energy market by replacing coal in power stations and heavy industries. The technology is also seen as a viable alternative to white pellet fuel resources in the biomass industry.
The CoalSwitch® assets include the company’s patented steam explosion process, production data from initial activities at the Player Design Inc’s facility in Maine, and all relevant customer and internal test data.
In addition to these assets, Active Energy holds cash and cash equivalents of approximately $0.5 million and a 4.1% stake in Alpha Prospects Limited, valued at roughly £0.68 million. Alpha Prospects, an investment company specializing in green technologies, is currently collaborating with Active Energy to explore the sale of this shareholding.
Due to dwindling cash reserves and ongoing operational costs, the Board is considering a voluntary liquidation to return capital to shareholders, should no suitable offers for CoalSwitch® assets emerge soon. The outcome of such a liquidation and the potential returns to shareholders remain uncertain.
The Board also notes that the audit for the fiscal year ending December 31, 2023, may not be completed by June 30, 2024. Failure to publish the FY 2023 Results by this deadline could lead to the suspension of the company’s ordinary shares from trading on the AIM market.
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