Alternative Energy Limited Status Update (8913I)

TIDMALR

RNS Number : 8913I

Alternative Energy Limited

30 March 2015

30 March 2015

ALTERNATIVE ENERGY LIMITED

(the "Company")

Status Update

Due to the significant amount of market activity during the last few weeks the Board feels that it is appropriate to provide an update on the Company's current status.

Firstly, the Company is under considerable funding pressure as drawdowns under the Company's convertible note programme ("Program") (as announced on 1 April 2014 in the Company's Interim Results) are currently on hold whilst the Company seeks to get back on the SETS platform for trading. Being on the SETS trading platform is a condition of the Company's Program which condition was complied with at the time the Program was entered into. The Company was taken off the SETS platform whilst its shares were suspended last year and has been seeking to re-join that platform with the assistance of its brokers. Despite efforts, this has so far not been resolved but, in the meantime, the Chairman has continued to fund minor bills but has been unable to provide major funding to supplement the Program or pay its larger creditors. The Company is engaged in other funding discussions but these have not yet come to fruition. The combination of this has been to put the Company under considerable pressure and the Company is currently urgently exploring other means of raising interim funding to pay for its ongoing operations and settle outstanding sums due to its creditors.

The Company has taken drastic measures to eliminate expenditure which have included not renewing the Company's lease of its Singapore premises, cutting staff and changing the terms of the contracts of remaining staff to reduce costs. All directors' salaries are being frozen until the Company's circumstances change.

The Company is continuing to work on the sales of its products, in particular its street lights which are currently being tested in the UK by a number of different potential customers. Tests have so far been positive and orders are being pursued.

The Company has also commenced preliminary discussions with a number of different parties with a view to acquiring additional businesses or projects which could secure the Company's future. These discussions may lead to a substantial further issue of shares in exchange for an asset or business and may result in a reverse takeover of the Company.

In the meantime, the Board are working with the Company's creditors and potential investors in order to enable the Company to continue to trade but the market should be aware that failure to either restore funding to the Company through the Program, or find additional funding or a suitable acquisition in the near term will mean that the Board may need to request a suspension in the shares of the Company. The Board hopes to clarify the Company's position shortly and in the meantime, extreme caution is therefore advised in dealing in the Company's shares.

 
 
  ALTERNATIVE ENERGY LIMITED 
Richard Lascelles, Independent Non-executive Director  Tel: [phone] 
 Eric Goh, Executive Director                           Tel: [phone] 
BEAUMONT CORNISH LIMITED (Nomad) 
 Roland Cornish and Emily Staples                      Tel: [phone] 
BEAUFORT SECURITIES LIMITED (Broker) 
Jon Levinson and Elliot Hance                          Tel: [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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