Business
Placing of new shares
Placing of new shares.
About this update from H-power Plc
[{"type":"text","content":"\n RNS Number : 9269U AFC Energy Plc 21 May 2008 \n \n21 May 2008\n\nAFC Energy plc\n('AFC Energy' or 'the Company')\n\nAFC Energy moves towards commercialisation with £4.4 million fundraising\n\nAFC Energy plc (AIM: AFC), the low-cost alkaline fuel cell company that generates clean electricity from by-product hydrogen, today announces 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.\n\nPlacing Highlights\n\n\n\n40 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\n \n\n\nThe size of the offer was increased owing to strong demand from institutional investors\n \n\n\nThe 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\n \n\n\nPart 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 \n \n\n\nProceeds will also be used for the establishment of manufacturing processes and supply chains with third parties with the opening up of additional sales opportunities\n \n\n\nApplication 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\n \n\n\nWhen issued, the new ordinary shares will rank equally with the Company's existing ordinary shares\n\n\n\nGerard Sauer, Chief Executive, AFC Energy plc:\n\n'Taking the fuel cell to the energy source to avoid many of the costs and infrastructure problems of moving hydrogen, is at the heart of the Company's strategy. The support shown by new and existing shareholders in AFC Energy is very encouraging.\n\n'The chlorine industry, which is familiar with our type of technology, remains a very important market for AFC Energy; the chlorine industry offers significant amounts of hydrogen currently bei...