Active Energy raises £1.5m to advance Lumberton site

The AIM-traded firm said the fundraise consisted of a conditional placing of 251,666,680 new ordinary shares, after its proposed share capital reorganisation, at a price of 0.6p each.

It said the placing remained conditional, among other things, on shareholder approval of a share capital reorganisation at a general meeting on 7 September.

The funds would be used for the advancement of Active Energy’s Lumberton site, which was acquired in March 2019, and had now become the hub for all of its activities in the US.

Specifically, it would progress construction of the five tonnes per hour ‘CoalSwitch’ reference plant in accordance with the newly-granted construction and air permit, and to undertake further research and development, including a review of new, complementary feedstock.

The funds would also be used to provide general working capital to cover operations and other corporate costs.

“I am delighted with the support we have received from both existing and new institutional investors in this placing which now places Active Energy in a strong position to push forwards,” said chief executive officer Michael Rowan.

“It has been a busy and exciting first half of the year for the company.

“The completion of the formation of Active Energy Renewable Power and the initial raising of funds through the issuance of convertible loan notes, means activity at the Lumberton Site has already begun to significantly ramp up.”

Rowan said the receipt of the construction and air permit was another milestone to begin the final stages of the commercial development on the company’s CoalSwitch plant.

“The proceeds of this successful placing will be allocated directly towards helping us achieve this, as well as allow us to look into the future and the scaling up of operations at Lumberton.”

At 1434 BST, shares in Active Energy Group were down 17.5% at 0.66p.