News Column

Active Energy Secures New Financing To Boost Ukraine Operations

June 13, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - Active Energy Group PLC Friday said it has secured more working capital finance via two new facilities, which it said will significantly increase the financial and operating capacity of its operations and take advantage of attractive opportunities in Western Ukraine.

The European supplier of woodchip and timber products for green energy biomass power generation said in April that it had secured USD2 million in working capital finance from its largest shareholder, Gravendonck Private Foundation, which holds a 27.4% stake in the company.

It also said that it had agreed with its Turkish MDF customers to reduce deliveries whilst the current uncertainties in Ukraine continue.

Active Energy said Friday it has now secured an additional 365-day USD1 million facility from Gravendonck Foundation, which it said it will use to finance the acquisition of a new wood-cutting machine and a new rotor for the existing wood cutting machine at Yuzhny Port in Odessa, Ukraine. It uses the existing wood cutting machine in Ukraine for its shipments of woodchip to MDF manufacturers in Turkey.

"We are continuing to trade well and are seeing opportunities for further business in Ukraine, notwithstanding the political pressures in the country," said Chief Executive Richard Spinks in a statement.

In the same statement Friday, Active Energy also said that it has entered into a facility agreement with Ukrainian company, Industrial-Financial Company "Ruteks" Ltd, which will provide it will approximately USD1.7 million and is repayable by December 31.

It said the funds, which are being provided under a Ukrainian fiscal incentive programme, will be used initially to finance the acquisition of additional volumes of timber, which it would convert to wood chip and ship to MDF manufacturers in Turkey.

Under the terms of this agreement, Ruteks is entitled to a participation fee of USD5 per tonne on all shipments financed under the agreement. The company said it has already drawn down half the funds in the facility.

Active Energy shares were untraded early Friday; they were last quoted Thursday at 2.52 pence.

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Source: Alliance News

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