Settlement agreement with Player Design Inc.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 WHICH FORMS PART OF DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR").
5 March 2024
Active Energy Group Plc
("Active Energy" or the "Company")
Settlement agreement with Player Design Inc.
Active Energy (AIM: AEG, OTCQB: ATGVF), the international biomass based renewable energy business, announces that, further to its announcement on the 22 February 2024, the Company and its subsidiary Advanced Biomass Solutions Limited have, on 4 March 2024, entered into a settlement agreement (the "Settlement Agreement") with Player Holdings LLC together with its subsidiaries MaineFlame Inc, Player Design Inc and Tyler Player (together, the " PDI Parties" or "PDI") in regard to former activities for the potential production of CoalSwitchÒ at PDI's facility as Ashland, Maine ( the "Ashland Facility") .
The PDI Parties have agreed to pay Active Energy a cash payment of $1,650,000 by no later than 5th March 2024, in consideration for, inter alia:
· The return of cash proceeds formerly committed by Active Energy toward the development of the Ashland Facility.
· Active Energy transferring the ownership of certain production equipment, not essential to future CoalSwitch® production, currently located at the Ashland Facility and elsewhere in Maine to the PDI Parties (the "Transferred Assets"). The book value of the Transferred Assets as at 30 June 2023 was $2.5 million.
· PDI will retain the ownership of its intellectual property created and developed in respect of specific know-how for its production methods at the Ashland Facility, and PDI will retain rights to own, develop, license, and use this specific know-how. These rights do not infringe upon Active Energy's current IP and PDI is not permitted to use any of Active Energy's existing CoalSwitch® trademarks nor use any of Active Energy's existing proprietary intellectual property in the US, Canada or worldwide.
Active Energy retains complete ownership of all its original patents on the steam explosion process, including all production knowledge acquired from the former production activities at the Ashland Facility applicable for its future production methods for biomass products. In addition, both Active Energy and the PDI Parties have terminated all current legal claims against each other.
Future CoalSwitch® production
Since September 2023, Active Energy has focused on improvements to both CoalSwitch® fuel and the production processes utilizing the new executive management team based in the US. At the Interim Results, the Company announced a working partnership with Omega Thermal Solutions Group LLC, based in the US, to develop a new manufacturing process and create variants of CoalSwitch® fuel focusing on a torrefaction production process. The improved fuel performance metrics, such as higher fixed carbon content allows these biocarbon fuels to participate in the growth markets such as soil amendments, air filtration, ferro silicon and the metallurgical steel industries. This product development is opening new revenue opportunities for CoalSwitch®.
Michael Rowan, CEO of Active Energy, commented: "An agreement with PDI regarding the former production activities at Ashland has been achieved. The Company can now develop an alternative strategy for the future production of CoalSwitch® utilizing the knowledge gained from the operations at Ashland and the commercial scale burn tests we have completed."
Enquiries:
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Active Energy Group Plc |
Michael Rowan (Chief Executive Officer) Michelle Fagan (Chief Financial Officer) |
info@aegplc.com |
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Allenby Capital Limited Nominated Adviser and Broker |
Nick Naylor/James Reeve/Daniel Dearden-Williams (Corporate Finance) Amrit Nahal (Sales/Corporate Broking) |
Office: +44 (0)20 3328 5656 |
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Camarco Financial PR Adviser |
Tom Huddart / Emily Hall / Lily Pettifar |
aeg@camarco.co.uk Office: +44 (0)20 3757 4980 |
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Scoville PR US PR Adviser |
John Williams |
jwilliams@scovillepr.com |
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Website |
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www.aegplc.com |
www.linkedin.com/in/active-energy-group-plc/ |
@aegplc |
About Active Energy Group
Headquartered in London with operations in the United States, Active Energy Group plc (AIM: AEG, OTCQB:ATGVF) is a biomass-based renewable energy company focused on the production and development of next generation biomass products that have the potential to transform coal fired power and heavy industries and the existing renewable biomass industry.
Active Energy has developed a proprietary technology which transforms waste biomass material into high-value renewable fuels. Its patented product CoalSwitch® is a leading drop-in biomass renewable fuel that can be blended and co-fired with coal at any ratio without requiring significant plant modification or wholly replacing existing biomass fuels.
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