Member Info for Bananaman2

Richlist, Yes they are asking to pass the resolution not issue the shares.

AFC may never need them but if they are to set up manufacturing of ALkameme and Hydrox cell S than this would be huge.

Also it is in £2.2 million tranches. They can raise these at 16p but if they use the £31.6m wisely now and the SP is increased they may be able to raise capital at 75p, £1 or £1.50 per share, who knows. This would mean that everytime they raise the £2.2 million the dilutive effect would be less.

There has to first be a positive effect from the £31.6m fundraise and sales. Then we may see a dramatic increase in SP which will stem further dilution from the premptive placing looking for approval at the AGM

Yes, you were right the first time. There are resolutions 2 and 3 to be passed at the AGM which could involve further dilution of up to approximately 40% of the new share capital. Resolution 2 was 33% and 3 was 10% of 676m.

So 223m plus 68m on top of 676m is 967m shares.

But as stated, if these are raised at a higher share price then the total dilution may never happen. Further funding is most likely to be used to get Alkamem production and Solid Cell production up and running in parallel to the liquid systems. This should not be negative if there is a market for this then it would be huge for AFC. They would be a true market leader in low cost fuel cell tech

AnneOwl, hopefully buy the time they have finished spending the £31.6m they will have a much higher MCap due to sales. I am hoping to see this equal to peers.

The first £31.6m being used now will get them into the Gen set displacement and EV charger markets only. Hopefully free cash flow within 2 - 3 years

Any further dilution could still be used to take AFC on further with Alkamem and the solid fuel cell megabox systems. If they can find a market in Electrolysers for Alkamem and utilise the 2MW megabox for shipping and locomotive it would be huge for AFC. These are still under development but at least AFC have a product now which can be utilised to generate a very decent income before moving into other areas with this tech still not quite there yet.

Appreciate how you feel, I think we are all bting our nails on this until something happens

Another 200k buy from 11.24 this morning. These are limit orders. Most people that buy open market will work in monetry denominations.

Limit orders are normally placed by number of shares at a specifc price.

Anyway, its a quiet day today across the board so it great to see a small apetite for these even in this quiet period.

Taskmaster, Sounds optimistic.

Remember how long it took AFC to get from the 3kw alpha system to where they are today. Fortunately AFC have focused on cost and not just getting a fuel cell to market. This will pay dividends in the long run as their low cost option should be favoured by customers and potential buyers

In the long run, the just get the system to market option will never work as in many cases it is just not viable

This is obviously good publicity but is HyPoint commercially viable or are there more cost effective systems out there ? Also have a long way to go to develop a fuel cell large enough to power an aircraft by the sounds of it.

Fairview ??

What comment on revenue last year ?

Exactly that. The dilution can be positive and add significant value to the business so long as the cash is used to accelerate growth and bring greater returns (any return would be nice).

The £31.6m raised now has obviously had a dilutive affect but this is not reflected in the SP currently at the levels of the announcements. The cash being earmarked for good and not to pay the BoD wages and keep the lights will only have a positive effect. It just patience from here.

I will also be ecstatic if we can meet the Mcap of sector peers such as CWR and ITM with the current number of shares in issue. Just missing the vital sales that we have been waiting so long for.

such small volumes pushes this up. Two 150k buys come through, late reported plus the 100k moves the price.

Staggering difference when you look at it like that. You must have around 500k shares to make that much difference.

Thats quite a holding, hopefully you picked quite a few up sub 5p

I think the BOD need to explain what their intention is. The additional dilution is over a defined period and they may not use it. But as part of the AGM is to pass the resolutions related to diultion they should not be allowed to do this unless their is evidence of shareholder value.

Dilution without a positive use for capital is not shareholder value it is devlauation.

Completely understand your frustration. I wold like to see the SP equivalent closer to our peers in respect of MCap before utilising any additional tranches of placing shares they are hoping to pass. This way they reduce dilution and may not need to utilise anything like the percentage they are discussing.

I would not worry too much about this. They havent even updated the market yet about the last fundraise. I expect there is good things to come from its usage.

For anyone that didn't read the questions and answers from the last AGM here is the link

https://www.afcenergy.com/wp-content/uploads/2020/04/AGM-Q-and-A-2020.pdf

Has anyone raised any questions for the BoD at monday weeks AGM ?

When they did this last time they answered the questions at included link to them.

What have people asked ?

Should we determine the most important questions on here and then collectively raise them as a group ?

Does anyone have a decent relationship with the company that is prepared to raise them via email ?

Mine would be

How do AFC intend to increase shareholder value in respect to closing the gap between the market cap of sector peers and reflecting this in the SP, avoiding the effects of dilution ?

With you on that Phats. Its primed and ready to go just hasnt started moving yet.

*conservative

Having real issue with fat fingers this morning.

Cat. It is better this way. Not to price in the potential here. It is not a given that it will be a success but they have moved to phase 2 after successful phase 1 which offers a high level of hope and increased probability.

At some point in time someone has to crack it. Why not this JDP

Martyh. Thanks for the clarification.

If with the concervative estimate it is still compelling.

The JDP with Paragraf has not even priced in ny potential, but it is better this way.

Is 55Mw what is possible for the Italian factory.

Also worth considering, where production is in one location there will be economy of scale and therefore profitability for the additional capacity will or may increase slightly as overheads are shared across the increased capacity.

There will be a requirement for more production staff etc but general overheads such as management expenses and admin would not raise by the same factor.

Martyh, why would you spend the fundraise capital on increasing capacity to 55Mw if you didn't intend to fill the 20Mw in the first place. Hence the reason RR is also looking for licencing due to the material size order received from Endeco.

Successful IM Efficiency trials would present a 20Mw opportunity. Verditek would need the additional capacity to service other customer requirements.

Do you know how long the factory took initially for the 20Mw line ? Wondered how long before they have the new line operating ?

What is potential for 55Mw in house capacity ? I expect it dwarfs the current £30m MCap.

As PH has stated. The 20Mw based on the low selling price would generate £6m before EBIT. Net profit is likely to approx £4m. This would be multiplied by 3 for the increase capacity so £12m. Although likely higher due to economy of scale.

With a P/E of 14 we have an MCap of £168m and an SP of 57p. Although this may be concervative if a higher selling price is achieved, further lines are licenced in strategic locations and significant economies of scale are seen from up sizing capacity.

I hope so Croc. A sustained rise is long over due. Nonspiking just a steady rise and consolidate, rise and consolidate.

A stealth re rating would be ideal. 10-15% per week compounded could result in a 300% rise in 10 weeks give or take. A stealthy 80p

Oh. Before anyone starts linking sunpower or other flexible panels I suggest going back through the post history as all this was done last weekend.

There is room for competition in this market but nothing has come close on price or certification.

Verditek are keen to displace diesel power generation and looking at places where large amounts of off grid power is required but traditional solar PVs are not robust and durable enough for harsh environments.

Flexible panels can literally be glued to the side of a tent. That is the benefit of light weight flexibility.

MMgames. All the info is available in RNSs and on the website.

To summarise

Currently have a commercial flexible solar PV that has passed IEC testing and is the only certified flexible panel on the market

1/10th the weight of a standard traditional panel per m2 but produces the same power and no loss of efficiency

Robust and durable. Ideal for off grid and remote locations such as those in oil and gas, mining, agriculture, defense (such as war zones or camps) marine, transport cooling, telecoms.

Have just reopened Italian factory with a 20Mw capacity per annum. New CEO has decided that sales projections require greater capacity and is currently increasing capacity at wholly owned facility. Also looking for licencing of manufacturing to other facilities in stategic locations

Have receievd 4 orders in the last 3 weeks from new customers in different markets.

Currently have trials in progress to demonstrate the cost saving s for transport refrigeration with IM Efficiency.

Capacuty orders expected to generate £6m before EBIT with a reflected SP of 25-30p based on P/E of 14. Increasing capacity to 60Mw will treble this.

Capacity increase currently underway with funds received from £1.5m of placings earlier in year.

Expect to have free cash flow by end of 2020

Have I mentioned the JDP with paragraf for PVs which will potentially be 30-40% effciency (more or less double standard solar) and less than 1mm thick. This is the potential jewel in the crown and has not even been priced in. Initial trials to combine graphene with the Verditek PV has been a success. JDP now in phase 2 to involve efficiency to greater than 25% and look at ways to manufacture at scale. If this is a success, and an update is due before year end it will be transformational for verditek and the solar PV sector.

Hope this helps

DHC. You can read the posting history on here. All very informative. I am sure you will not ask anything or find anything that hasn't been asked, referenced or come up before.

There are several other posters that will also supports with detailed responses.

I will warn you that any negativity is likely to be ignored as todate this has been a very positive environment and posters on here will not respond to bull 5hit.