Business
Exercise of Option by Linc En
Exercise of Option by Linc En.
About this update from H-power Plc
[{"type":"text","content":"\n RNS Number : 2444U AFC Energy Plc 12 October 2010 \n \n\nAFC Energy PLC\n(\"AFC Energy\", \"AFC\" or the \"Company\")\nExercise of Option by Linc Energy and Placing\nAFC Energy (AIM: AFC), a world leading developer of low cost alkaline fuel cell technology, is pleased to announce that Linc Energy Limited (ASX: LNC) has exercised its option to extend licence rights and that it has raised £4.0 million net from the placing of new ordinary shares with Linc Energy Limited (\"Linc Energy\") and a group of private investors.\nFurther to the binding heads of agreement made between AFC with Linc Energy and B9 Coal Limited (\"B9 Coal\") and announced on 8 December 2009, Linc Energy has exercised its option to extend in perpetuity its worldwide exclusive rights to utilise and operate AFC fuel cells in conjunction with underground coal gasification (\"UCG\") and to use AFC fuel cells in any commercial or research application in Australia. \n \nLinc Energy has invested £2.97 million pounds in AFC Energy at a 7.5% discount to the 30 day volume weighted average price at the close of business on Wednesday 5th October 2010 meaning that the exercise price is 17.72 pence per ordinary share. This includes a £2.3 million investment to exercise its option. Linc Energy will receive 16,763,650 new ordinary shares of 0.1 pence each in the capital of the Company (the \"Linc Shares\").\n \nAFC, Linc Energy and B9 Coal will now work together to conclude the detailed terms of the licence. Under the terms of the licence, for Linc Energy owned sites, Linc Energy will pay to AFC an upfront payment calculated on the cost of delivery of fuel cell systems, and a royalty based upon profits generated from the use of AFC fuel cells. Linc Energy will pay B9 Coal, as introducer and broker to the transaction, a royalty equal to 2% of the net profits generated from the use of AFC fuel cells.\n \nAFC is also pleased to announce that it has agreed, conditional only on Admission (as defined below), to place a further £1.055 million of new ordinary shares at 18.5 pence each (5,702,703 new ordinary shares of 0.1 pence each in the capital of the Company (the \"Placing Shares\")) with a group of investors, comprising principally high net worth individuals (\"Investors\"), who have been in dialogue with the Company about the developm...