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LONDON (Alliance News) - AFC Energy PLC on Friday said its loss narrowed in its most recent financial year due to lower administrative expenses
The alkaline fuel cell power company also said it has entered into a new GBP4 million convertible bond facility and is planning to raise GBP813,000 via share subscription.
Shares in AFC Energy were down 14% at 3.24 pence in morning trade.
The GBP4 million facility is with Thalion Global Group and lets AFC Energy draw down up to GBP4 million via the issue of convertible notes worth GBP25,000 each.
The funds will be used to "supplement the company's cash position," which was GBP1.4 million at the end of March, allowing its product development and commercialisation strategy continue.
The GBP813,000 subscription is priced at 3 pence per share and was arranged by M C Peat & Co LLP and Leander Capital Partners Ltd and will be used, in conjunction with the loan facility, to prepare the company for commercial deployment and strengthen its supply chain.
The company's pretax loss for the year to October 31, 2018, was GBP5.0 million, shrinking 9% from a GBP5.5 million loss the year before after administrative expenses shrank to GBP5.0 million from GBP5.4 million. The company did not generate any revenue in either financial periods.
AFC Energy Chief Executive Adam Bond said: "Our commercial activity continues to grow, both through prospecting and market studies. The latter has identified several addressable markets over and above our Chlor Alkali base principally in off grid applications traditionally dominated by diesel generators."
Bond added: "The fundraising concluded provides us with GBP4.8 million which together with existing cash reserves funds the continued development of our technology base, range of products, manufacturing readiness and commercial presence."
