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No fuelcellinvestor, I also have no objection to there being 1 billion shares if that is what it takes to progress the company to greatness. My objection is that the company is sold at 16p a share while the masterpiece is concealed behind a curtain. For people who bought shares recently in the 5p range this may seem fine, but many of us have lived through years of 'new dawns' to get here. Many of us are still far underwater on our investment and deserve more transparency and information (this is an obligation of a BOD under AIM rules) before giving authority to issue close to 1 billion shares before the next AGM.
Miko, you seem to have missed a key point.
The current AFC fuel cell is large and heavy and will not be used in cars, trains, boats.
This may apply to the solid version fuel cell which is smaller and lighter and predicted to become available in 2022.
So, 25% discount to the prevailing share price (which may or may not have been walked down).
30% tax relief and 0 capital gains.
We might all be happy with that.
But it would be a good thing if these funds are used for the purposes as defined and are in the hands of long term holders rather than being traded. That would be a very valuable aspect of them. This does seem like a different sort of investor. Hoping they are not keen to take up many more shares at 25% discount though.
Bananaman. I think our posts may have crossed, but this is not a misprint.
The cash value is the nominal value of the shares at 1p a share.
They really are asking us for authority to issue an extra 43% of the company before the next AGM.
Bananaman, I also wondered how 33% of share could have a value of £2million ish and whether it was a misprint, but it must be referring to the nominal value of 1p a share (from memory). So no this is not a misprint, they really are asking for authority to give away another 43% of the company before the next AGM at the price they choose. Fundraising with shares at a 25% discount to the prevailing share price seems a large discount but fair enough if that is what the market would bear. But giving AFC that power when so little information is provided to us about the current position of the company, pipelines and where the current £30 milliion will be spent seems to be taking a liberty.
MIKO I see you are a new poster here. AFC launched their EV charger last December then took one on a roadshow around the country in the spring of this year. To date no contracts for sales have been announced and there are no installations with customers. No further details of sales pipeline, contracts in negotiation are shared with us. ITM are very transparent about their sales pipeline while AFC are very mysterious. I have been doing my own research on AFC for 14 years now so please do not patronise me. You seem to have misunderstood the situation so I suggest you do more of your own research.
But I have no expectation that there will be a change in transparency. Resolutions 2 and 3 of the General Meeting ask us to agree to further share issues of 33% plus 10& of the new level of shares in issue. I agree that it would make no sense to advertise a fund raising. However, it should be done at a fair price determined by being informed about the state of the company. It should not be done at a price where the state of the company is behind a curtain and a masterpiece is concealed from us. The ITM approach inspires confidence.
Yes, this is like watching the curtain being lifted slowly to reveal what is behind the scenes. My argument is that there should be more transparency about what is unfolding behind the scenes. ITM regularly update their sales pipeline figures for under contract, in negotiation and high quality tender opportunities. Why are AFC so unable to offer anything like this type of transparency. If they did it may make it more difficult for people to walk down the share price as investors would have more confidence and not part with their shares at below value. Further, when you don't have signed contracts but do have MOUs information about those MOUs is material.
My thinking here is that we really do need better communication.
If this level of dilution is needed to take the company forward, so be it, but the AFC really do need to communicate where they are so that any fundraise is at a fair value. I suspect with better news flow the present one could have been based on a higher share price.
Yes Pepe is correct.
The General meeting has three resolutions.
Resolution 1 is to allow extension of the current BOD powers to raise the current £30m. This will take the shares in issue to (I think) 478m + 187.5m = 665.5m
Resolution 2 is to allow allocation of a further 33% above this enlarged share capital.
Resolution 3 is to allow allocation of a further 10% above this enlarged share capital.
I think all this would take us to 951.6 million shares in issue. I would have no objection to this if needed to progress the company and the shares were issued at a fair price. At the moment I feel that BOD communication has reverted to a poor level. We missed the vital AGM presentation this year when we have a chance to catch up with detail of AFC progress. We were yesterday presented with an article suggesting alkamem is due to be used at the Beckton desalination plant. This may not be true, but if it is the case we should be informed and if this sort of information improves the share price it would result in a higher price for new shares issued or more funds for the company for the same level of dilution to us.
I do think we need an update on the company situation, particularly the position regarding sales, but also product development before we offer power for this level of dilution to the BOD. These shares could all be issued at a paltry 16p if we are not given more updates on progress to boost the share price (hopefully) to ensure further dilution is at a fair share price.
Yes they seemed very efficient and organised. I had a problem registering for some reason and thought it would be impossible in the short time course. They sorted it out for me very efficiently over the phone and I was able to make my application in plenty of time. Then an email early this morning to tell me I got my full allocation and seems the shares will be open for trading next Monday. This seems to have worked far better and quicker than previously when people seemed to wait weeks for their shares and refunds. May not all go smoothly by Monday, but they seemed very impressive.
I think the information said they might close early when fully subscribed but I noticed they didn't, so indeed perhaps they gave a proportion of share to people after a certain threshold was reached.
The Energyst article makes it sound as if it was an interview. May not be as it sounds though.
Thanks for the website link. The Beckton plant is only one of many Acciona desalination plants around the world with the fourth in Saudi Arabia and first in Hong Kong under construction. If this is real information and proves to work well there may be many more opportunities for this deployment.
I don't want to complain on such a happy day, but does dawn on me that if this is true and had been announced the placing might have been at a higher price with less dilution to us long sufferers. If this information is what it seems and has been held back there are implications.
Thanks for posting the link to this article Fuelcellinvestor.
Yes!!! this bit!!
Based around its core technology, an alkaline HydroX-Cell system, AFC has now spun out variants suitable for power storage and electrolysis.
Next year the firm is set to install hydrogen electrolysers at Britain’s biggest water desalination plant, at Beckton in east London. Spanish water and infrastructure engineers Acciona built the plant in 2010. It purifies 150,000 cubic meters a day from the Thames.
AFC said its alkaline membrane technology will assist in a process of reverse osmosis, resulting in electrical storage from electrolysed hydrogen.
This makes it sound like a sale for use of Alkamem plus some new technology developments. If this is what it seems it would be massive news. Surely we should hear this officially rather than from Fuelcellinvestor's link to an article. Hope this will be formally clarified very soon. If so, did the £30 million investors know about this when we didn't?
Got an email promptly this morning saying I got all the shares I asked for with admission due on 6th July.
They seem very organised and efficient so far.
Doubt they were particularly nice to me, so maybe that section of funding was not greatly oversubscribed.
The dilution is a bit upsetting, but this level of funding in the bank really does make AFC a different company with scope to move ahead and also much more substantial for people to buy things from. It has to be a very good thing for AFC going forward. Sounds like new iis took up the shares, so not De Nora. Just wishful thinking on my part.
Don't want to put a damper on enthusiasm for this but..
We know from the last proactive interview that AFC have MOUs.
I believe if they had been made public the share price and therefore the issue price would have been higher and meant less dilution for us to raise £30 million. John Rennocks has done this to us again with repeated failure to issue information.
Yes, with £30million in the bank, hopefully AFC will not want to issue more shares should De Nora be interested. If they wait a while hopefully the price per share will be much higher. So if De Nora want a stake this may be a chance for them not to miss. Who knows, perhaps they expect reward for all their work in another way. Perhaps what they want is part of £30 million to progress to the next stage of mass electrode production!
Interesting, thanks for posting Notes.
Well, may be entirely wrong, but De Nora have done a lot of work and we don't know what reward they will want.
May be just being electrode manufacturer will be enough, but they do have a history of taking a share in companies
they have helped progress. If they don't want a share of AFC it would seem a bit rude. If they do, I hope it is now and not another massive share issue in the not too distant future.
Just a thought is that the latest agreement with De Nora runs until August. This was finalising arrangements for bigger
scale of electrode manufacture, quality control and pricing for this larger scale production. Timelines may have slipped
due to Covid. However, if De Nora are happy with what they see and want to buy a stake of AFC this might be a good opportunity. Also, if agreements for larger scale manufacture require funding this may be part of the funding needed. May be completely wrong of course.