AFC Energy raises £6m

AFC Energy, the industrial fuel cell power company, has conditionally raised £6m, gross, through the issue 60,000,000 new ordinary shares – 58,500,000 via a placing and the remainder through a subscription – at 10p apiece.

The issue price represents a discount of 40.3% to the mid-market closing price of 16.75 pence on 13 February.

AFC Energy said the net proceeds – approximately £5.5m and to be supplemented by any additional funds raised through an open offer – would be used to support the company on its journey to commercialisation, and specifically for:

– delivery of its commitments under the joint development agreement with De Nora

– business case development with De Nora

– scoping study completion with Peel Environmental Limited and other third parties in advance of any potential project deployment

– funding the ongoing operation of the Company’s demonstration plant at Stade, together with ongoing testing costs

– general administrative expenses and ongoing working capital

Chairman Tim Yeo said: “AFC Energy recognises the value that can be delivered through institutionalisation of the share register, and following growing interest from blue-chip financial institutions in recent weeks, the company is pleased to announce the successful completion of the accelerated book build. Institutionalisation of AFC Energy’s share register recognises the strong progress we have made over the last three years.

“Our technical developments and project development opportunities now position us to capitalise on a number of emerging project opportunities.

“The Board also recognises the importance of our retail shareholder base and in recognition of our shareholders’ ongoing support, we have offered the opportunity to our shareholders to participate in the open offer on the same terms as the placing and subscription.

“The board are confident this fundraise will strengthen AFC Energy for a number of technical and importantly, project specific successes throughout the course of 2017.”

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