Applescript: How to move a file after finishing processing it?
Change the second to last line to:

move alias originalFolder to alias newpath with replacing


There are two things:


All four variables are just strings. In order to tell Finder that they are related to the filesystem, add alias (or file or folder) before the string.
The path where are are moving it to should be the path of the enclosing folder, not the path of the moved folder in its new location.