Ceramic Fuel Cells poised to raise 4.3m pounds from investors

Ceramic Fuel Cells, the developer of generators which use fuel cell technology to convert natural gas into electricity, has received in principal commitments from institutional investors in the UK to raise a 4.3m pounds, subject to the finalisation of transaction documents with each of them.

The company reported that the documentation was expected to be completed over the next two days and said that the amount raised could increase further over that period.

It said that the fundraising was to be constituted by the issue of both new ordinary shares and secured convertible loan notes. The notes would have a three-year term, a 9.0% per annum coupon rate payable quarterly and could be converted into equity at anytime at the holder's election.

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Ceramic Fuel Cells reported that the issue price of the new ordinary shares and the conversion price for the loan notes would be 2.14p per share.

In addition to the funds, the company said that it expected to receive a further AUD 5.0m (£3.3m) in cash from the Australian Government around the middle of the year in relation to a tax refund.

This amount arose as a refundable credit in relation to the company's fiscal year research and development expenditure that was claimable for tax purposes, the company said.

Ceramic Fuel Cells' share price was down 0.53% to 3.73p at 12:27 on Tuesday.

MF