ALR Alternative E.

 

TIDMALR 
 
RNS Number : 6692Z 
Alternative Energy Limited 
25 September 2009 
 

 
 
For immediate release25 September 2009 
 
 
 
 
ALTERNATIVE ENERGY LIMITED 
 
 
 
 
CIRCULAR TO SHAREHOLDERS 
NOTICE OF GENERAL MEETING 
 
 
 
 
The Board of Directors of Alternative Energy Limited (the "Company") have today 
posted a Circular to Shareholders including a Notice of General Meeting ("GM") 
to seek shareholder approval for the Company's modified investing policy that 
complies with the new AIM Rules for Investing Companies. The General Meeting of 
the Company will be held at 2.30 pm on 12 October 2009 at Alternative Energy 
Limited, 1 Science Park Road, #02-09, The Capricorn, Singapore Science Park II, 
Singapore 117528 
 
 
Background to Circular 
 
 
As set out in the AIM Admission Document dated 9 October 2007, the Company 
agreed that if it had not made a substantial investment, exceeding 50% of all 
funds available as defined by AIM Rules, within 18 months of Admission then it 
would convene a General Meeting and consider whether to continue ongoing 
research into investment opportunities or to wind up the Company and distribute 
any surplus cash back to Shareholders. Therefore, the Company is taking this 
opportunity to put the modified Investing Policy to Shareholders as the basis of 
the continuance of the Company. The Company also intends to continue to 
investigate other opportunities in the alternative energy market as they arise. 
If the modified Investing Policy is not approved then the Board will consider 
how best to wind up the Company and seek Shareholder approval as required. 
 
 
 
 
Proposed Modified Investing Policy 
 
 
The Company's proposed modified Investing Policy is to conclude an acquisition 
of a business/ a technology in the alternative energy sector that will be an 
efficient and greener alternative to conventional fossil fuel and nuclear 
methods of generating household and industrial energy. Various direct investment 
proposals will be considered and these are not limited to any specific 
geographical area. The intention is to acquire a business / a technology with a 
potential to develop and offer a real and commercially viable alternative to 
traditional methods of energy production and therefore create a real value for 
shareholders. 
 
 
The Directors collectively have considerable experience investing, both in 
structuring and executing deals and in raising funds.  Further details of the 
Directors' expertise are set out in Part I, paragraph 4 ("Company Directors") of 
the Circular. The Directors will use this experience to identify and investigate 
investment opportunities, and to negotiate acquisitions. Wherever necessary the 
Company will engage suitably qualified technical personnel to carry out 
specialist due diligence prior to making an acquisition or an investment. For 
the acquisitions which they expect the Company to make, the Directors may adopt 
earn-out structures, with specific performance targets being set for the sellers 
of the businesses acquired, and with suitable metrics applied. 
 
 
The Company may invest by way of outright acquisition or by the acquisition of 
assets, including the intellectual property, of a relevant business, 
partnerships or joint venture arrangements. Such investments may result in the 
Company acquiring the whole or part of a company or project (which in the case 
of an investment in a company may be private or listed on a stock exchange, and 
which may be pre-revenue), and such investments may constitute a minority stake 
in the company or project in question. The Company's investments may take the 
form of equity, joint venture debt, convertible instruments, licence rights, or 
other financial instruments as the Directors deem appropriate. 
 
 
The Company will be both an active and a passive investor. The Company intends 
to be a long-term investor and the Directors will place no minimum or maximum 
limit on the length of time that any investment may be held. 
 
 
There is no limit on the number of projects into which the Company may invest, 
nor the proportion of the Company's gross assets that any investment may 
represent at any time and the Company will consider possible opportunities 
anywhere in the world. 
 
 
The Directors may offer new Ordinary Shares by way of consideration as well as 
cash, thereby helping to preserve the Company's cash for working capital and as 
a reserve against unforeseen contingencies including by way of example, and 
without limit, delays in collecting accounts receivable, unexpected changes in 
the economic environment and unforeseen operational problems. The Company may in 
appropriate circumstances, issue debt securities or otherwise borrow money to 
complete an investment. There are no borrowing limits in the Articles of 
Association of the Company. The Directors do not intend to acquire any 
cross-holdings in other corporate entities that have an interest in the Ordinary 
Shares. 
 
 
There are no restrictions in the type of investment that the Company might make 
nor on the type of opportunity that may be considered other than set out in this 
section and in Part I, paragraph 2 ("Investing Policy") of the Circular. 
 
 
As the Ordinary Shares are traded on AIM this provides a facility for 
shareholders to realise their investment in the Company. The attention of 
Shareholders is drawn to Part II ("Risk Factors Applying To The Proposed New 
Investing Policy") set out in Section II of the Circular. In addition, the 
Directors may consider from time to time other means of facilitating returns to 
Shareholders including dividends, share repurchases, demergers, and schemes of 
arrangements or liquidation. 
 
 
The Company will provide an update on its investing activities at the same time 
that it publishes its audited annual results for the year ending 31 August 2009 
and as otherwise required by the AIM Rules. The Company has no current plans to 
publish any regular estimate of net asset value or updates on the investments. 
 
 
All of the Company's assets will be held in its own name, or through wholly 
owned subsidiaries. 
 
 
 
 
Update on Investment in Renewable Power Pte Ltd 
 
 
The Company provided an update on its current investment as set out in the 
Chairman's Statement in the Interim results for the six months to 28 February 
2009: 
 
 
"Against a background of deepening concern and financial turmoil which has 
impacted on all market sectors across the world, AEL has been quietly and 
consistently following its process, through the good efforts of its research 
team, of reviewing and testing alternative energy technologies in which the 
Company is interested. This has been done in accordance with the Company's 
investment policies with a view to achieving the Company's investment goals and 
achieving an acquisition which will provide substantial and tangible shareholder 
value. 
 
 
In particular, the Company has been considering the merits of a system of micro 
power generation based upon a domestic and commercial roofing system as an 
integrated solution to power generation needs." 
 
 
Further to this the Company has now spent a total of approximately US$3.6m 
following the acquisition of Renewable Power Pte Ltd and the assessment of the 
technologies it has identified in the alternative energy space. As a result, the 
Company has cash balances of US$1,809,961 as at 31 August 2009. The Company has 
agreed to focus on a micro power generation system based upon a domestic and 
commercial roofing system as an integrated solution to power generation needs. 
 
 
 
 
The Circular to Shareholders including the Notice of GM, and this announcement 
are available on the Company's website: www.alternative.energy.com.sg 
 
 
 
 
 
 
ENDS 
 
 
For further information, please contact: 
 
 
Richard Lascelles, Director Tel: 020 7408 1067 
 
 
Roland Cornish, Beaumont Cornish Limited Tel: 020 7628 3396 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 CIREANNSAENNEEE 
 

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