AFC Energy Regulatory News (AFC)

4 Dec 2009 13:53



4 December 2009

AFC Energy plc

("AFC Energy" or "the Company")

Successful placing raising GBP2 million

AFC Energy plc (AIM: AFC), the developer of low cost alkaline fuel cells that generates clean electricity from by-product hydrogen, is pleased to announce it has raised net proceeds of £2 million by way of a placing of new ordinary shares to UK investors. The Company intends that the net proceeds of the Placing will be used to complete the development of its low cost fuel cell system.

Placing Highlights

£2m net proceeds (£2.15m gross) 21,500,000 million new ordinary shares of 0.1 pence each are to be issued in connection with the placing, representing 14.4% of the enlarged issued share capital

The new ordinary shares will be issued at a price of 10 pence per share, representing a discount of 13% to the closing price on AIM on 3 December 2009

The proceeds from the placing will be used to provide operating capital for the development to commercialisation of AFC Energy's fuel cell systems

Six of the Company's directors have participated in the placing, including all four executive directors

Application will be made to the London Stock Exchange for the new shares to be admitted to trading on AIM. It is expected that admission will become effective and that dealing will commence on 10 December 2009

When issued, the new ordinary shares will rank equally with the Company's existing ordinary shares

Ian Balchin, Chief Executive, AFC Energy plc:

"We are delighted both to receive a combination of support from existing shareholders and to welcome new shareholders who recognise the enormous opportunity of AFC Energy's fuel cell system.

The placing when combined with projected sales, licensing, grant income and other commercial opportunities  provides AFC Energy with the additional working capital it needs to take its low cost fuel cell systems  through to commercialisation and introduce this energy generating capability to the huge market opportunity that exists.  

Our current rapid rate of progress is a reflection of the highly focused and skilled team of staff, suppliers and prospective customers that we have in place and we anticipate no need for any substantial increases in personnel.

We have a clearly laid out development programme in place during which we periodically freeze designs for testing. Work on our large scale c.50kW fuel cell system began earlier in the year and it is being developed in parallel with our 3.5kW Alpha System. Results from the extended customer testing of the Alpha System during 2010 will be directly applicable to the large scale system which enables us to accelerate its commercialisation. To benefit from economies of scale we shall be engaging with third parties who will assemble units on our behalf. We believe this approach is less capital intensive and lower risk than alternatives such as setting up our own assembly. We are highly confident that our first large scale commercial fuel cell system product will be available during 2011."

Directors' participation in the placing and beneficial shareholdings after the placing are as follows:

Following admission of the 21,500,000 new ordinary shares on 10 December 2009, which will rank pari passu in all respects with the existing ordinary shares of the Group, AFC Energy's total issued and voting share capital will comprise 149,182,854 ordinary shares.

The above figure of 149,182,854 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, AFC Energy plc under the FSA's Disclosure and Transparency Rules.

For further information please visit www.afcenergy.com or contact: