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Key Points:
- Shareholders of Active Energy voted against proposals to cancel trading of shares and initiate liquidation during the general meeting.
- The company secured a £125,000 interest-free loan from Zen Ventures to support ongoing audits and financial preparations.
- Plans for the Zen Loan include potential conversion to shares, contingent on shareholder approval and completion of terms by the end of October 2024.
Active Energy (LSE:AEG), a renewable energy company specializing in biomass production, has provided an update following its general meeting held on July 22, 2024. During this meeting, shareholders voted against the proposed resolutions to cancel the trading of the company's ordinary shares on AIM and to initiate a members' voluntary liquidation.
In the wake of this meeting, the Board of Active Energy has carefully considered the shareholders' feedback and engaged in discussions with several investors. The company remains committed to exploring avenues for commercializing its innovative CoalSwitch® technology. CoalSwitch® is recognized as a leading drop-in biomass renewable fuel that can be blended with coal at any ratio, enabling its use without the need for extensive modifications to existing plants or complete replacement of current biomass fuels.
To support its ongoing operations, Active Energy recently secured an interest-free, unsecured loan of £125,000 from Zen Ventures Limited, referred to as the "Zen Loan." This funding will primarily be directed toward completing the company’s audit for the fiscal year ending December 31, 2023 (FY 2023), as well as the unaudited interim results for the six months ending June 30, 2024 (HY 2024). Progress is being made on both the audit of FY 2023 results and the preparation of the HY 2024 interim results, and the Board is optimistic that these will be finalized and announced by December 2024.
The Zen Loan is intended to be convertible into new ordinary shares in Active Energy, with specific terms yet to be agreed upon. If no agreement is reached by October 31, 2024, or any other date mutually decided by the company and Zen, then £50,000 of the outstanding loan will be treated as a non-refundable deposit from Zen to Active Energy. The conversion of the Zen Loan into new shares will require shareholder approval and a waiver under Rule 9 of the Takeover Code, and further announcements regarding this process will follow.
