Placing and Directorate Change

RNS Number : 4189H

AFC Energy Plc

27 May 2011

 



27 May2011

AFC Energy PLC

("AFC Energy" or the "Company")

Placing of new Ordinary Shares

And

Directorate Change

AFC Energy (AIM: AFC), a world leading developer of alkaline fuel cells, is pleased to announce that it has raised £3.95 million net from the placing of 5,237,055 Ordinary Shares at a price of 40 pence with Linc Energy Limited (ASX: LNC) and from the Placing of a further 4,762,500 new Ordinary Shares at a price of 40 pence with a group of shareholders comprising existing institutional and private investors. The Company fixed the price at 40 pence on 25 May 2011 which represented a slight premium to the closing price on the day.

The aggregate number of shares to be issued by the Company is 9,999,555 new Ordinary Shares. Application is being made for these Shares to be admitted to trading on AIM and dealings are expected to commence at 8.00am on 4 July 2011 ("Admission").

The total enlarged issued share capital of the Company following Admission will be 183,338,762 Ordinary Shares of 0.1 pence each in the capital of the Company. The above figure 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, the share capital of the Company under the Disclosure and Transparency Rules.

Linc Energy has also been granted a right of first refusal in the territories it operates in, relating to all applications for a combination of AFC Energy's fuel cell technology with hydrogen derived from coal.

Following the Placing Linc Energy's shareholding will stand at 12%.

Use of Proceeds

The net proceeds of approximately £3.95 million will be used to increase the testing of the Company's commercial fuel cell systems including the  expansion of operating premises and is also expected to provide working capital well in  to 2013. AFC Energy currently has a cash balance of circa £3.6 million.

Directorate Change

The Company also announces that Edward Wilson, Managing Director, has resigned due to differences in opinion regarding the strategic direction of the Company. The Board regrets his decision and thanks him for his contribution to AFC Energy and wishes him well.

The Company has decided to recruit a Chief Executive Officer with international experience in the energy sector to lead the Company through the next phase of its development and commercialisation

The Company remains on track to deliver its commercial, Beta System, to AkzoNobel once the hazard and operability study (HAZOP) to permit its operation at the AkzoNobel site is complete.

Ian Balchin, Deputy Chairman & Chief Strategic Officer of AFC Energy plc, commented on the placing:"We are delighted that Linc Energy and some of our other substantial shareholders have demonstrated their confidence in the Company by making this further investment."

For further information, please contact:

AFC Energy plc Tim Yeo, Chairman Ian Balchin, Deputy Chairman David Marson, Finance Director	[phone]
Allenby Capital Limited                   Brian Stockbridge Alex Price	[phone]
Threadneedle Communications John Coles Fiona Conroy	[phone]

About AFC Energy 

AFC Energy is a world leading developer of low-cost alkaline fuel cells. AFC Energy's technology is focused on large-scale industrial applications and the objective of producing the lowest possible unit cost electricity. Please visit our website at www.afcenergy.com.

 

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