Business
Equity Investment of ?8.7m by Strategic Investor
Equity Investment of ?8.7m by Strategic Investor.
About this update from H-power Plc
[{"type":"text","content":"\n \nRNS Number : 4386O AFC Energy Plc 11 October 2012 \n \n\n11 October 2012\n \nAFC Energy PLC\n(\"AFC Energy\" or the \"Company\")\n \nEquity Investment of £8.7m by Strategic Investor\n \n \nAFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has agreed an equity investment of £8,670,212 in to AFC Energy by Ervington Investments Ltd (\"Ervington\"), whose ultimate beneficial owner is Roman Abramovich and which is associated with Millhouse LLC, an investment advisory company to Mr Abramovich.\n \nThe investment has been made through the subscription by Ervington to 32,594,782 new ordinary shares of 0.1p each in AFC Energy (\"New Shares\"), at an issue price of 26.6p per share (being the closing offer price on Friday 5th October 2012, the date of the subscription offer) and will raise £8,670,212 gross, £8.27 million net of costs. The New Shares will represent 15 per cent. of the enlarged issued share capital of AFC Energy. \n \nThe funds raised will further strengthen AFC Energy's balance sheet and provide the Company with additional cash resources to execute its long term growth strategy and invest in its low cost fuel cell technology over the next several years. Following receipt of the funds, AFC Energy's total cash balance will be £11.2 million.\n \nIan Williamson, chief executive of AFC Energy, said: \"This investment by Ervington is a ringing endorsement of AFC Energy's innovative technology and its strategy to become a leading hydrogen fuel cell energy supply company for industrial and utility-scale applications. Our low cost hydrogen fuel cells are cleaner and more efficient than technologies that use combustion to generate energy like gas-fired power stations. They also supply continuous, base-load power unlike other clean energy sources such as solar and wind power. Ervington's support not only enables us to take full advantage of our commercialisation plans expeditiously but will also provide us with high level access to energy users and potential partners globally.\"\n \nUnder the terms of the subscription agreement, Ervington has entered into a lock-in and orderly market agreement with AFC Energy, such that it cannot dispose of the New Shares within 12 months and for a further 12 months can only dispose of any New Sh...