AFC Energy raises £4.4 million

AFC Energy has announced that it has raised gross proceeds of £4.4 million by way of a placing by Blue Oar Securities of new ordinary shares to UK investors.

Placing Highlights

• 40 million new ordinary shares of 0.1 pence each are to be issued in connection with the placing, representing 31.3% of the enlarged issued share capital

• The size of the offer was increased owing to strong demand from institutional investors

• The new ordinary shares will be issued at a price of 11 pence per share, representing a discount of 4.3% to the closing price on AIM on 20 May

• Part of the proceeds from the placing will be used to provide operating capital for the completion and installation of AFC Energy systems at Akzo Nobel’s Bitterfeld site in Germany, and for the development of AFC Energy’s 50kW system

• Proceeds will also be used for the establishment of manufacturing processes and supply chains with third parties with the opening up of additional sales opportunities

• 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 28 May 2008

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

Source: Fuel Cell Today