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Active Energy raises £0.8m as it expands Lumberton operations
22nd Jun 2020 13:41
(Sharecast News) - Biomass-based renewable energy company Active Energy has completed a fundraise of £0.8m before expenses, it announced on Monday, through the subscription of convertible loan notes by new United States and existing European investors.
The AIM-traded firm said the notes were being issued as part of its existing series B convertible loan note instrument.
It said the proceeds would be immediately deployed to accelerate the development of, and increase production volumes at, its Lumberton facility.
The existing sawmill's second production shift was set to start in mid-July, the board said, adding that an additional saw-log export contract had been signed with a new south east Asian customer.
New sales and commercial opportunities were also being presented to the company at Lumberton, the directors explained.
"The board believes that this is the opportune moment to be investing in our lumber activities at Lumberton and that it must increase production to meet current levels of demand," said chief executive officer Michael Rowan.
"We are pleased to be announcing the next offtake agreement with and look forward to taking advantage of the market opportunities that are currently being presented to Active Energy."
Rowan said he was "excited" by the recent developments, as they had helped accelerate the expansion of the company's core activities at Lumberton.
"In addition, we are establishing the essential building blocks - namely establishing lumber supplies - for the commercialisation and full-scale production of our future 'CoalSwitch' technology in due course."
At 1332 BST, shares in Active Energy Group were up 20.71% at 0.94p.
The AIM-traded firm said the notes were being issued as part of its existing series B convertible loan note instrument.
It said the proceeds would be immediately deployed to accelerate the development of, and increase production volumes at, its Lumberton facility.
The existing sawmill's second production shift was set to start in mid-July, the board said, adding that an additional saw-log export contract had been signed with a new south east Asian customer.
New sales and commercial opportunities were also being presented to the company at Lumberton, the directors explained.
"The board believes that this is the opportune moment to be investing in our lumber activities at Lumberton and that it must increase production to meet current levels of demand," said chief executive officer Michael Rowan.
"We are pleased to be announcing the next offtake agreement with and look forward to taking advantage of the market opportunities that are currently being presented to Active Energy."
Rowan said he was "excited" by the recent developments, as they had helped accelerate the expansion of the company's core activities at Lumberton.
"In addition, we are establishing the essential building blocks - namely establishing lumber supplies - for the commercialisation and full-scale production of our future 'CoalSwitch' technology in due course."
At 1332 BST, shares in Active Energy Group were up 20.71% at 0.94p.