AFC Energy PLC, a leading provider of hydrogen power generation technologies, has announced a proposed fundraising to raise approximately £13.5 million. The fundraising will be conducted through a placing of new Ordinary Shares and a direct subscription with certain directors, as well as a REX Retail Offer of up to £2.0 million. The net proceeds of the fundraising will be utilized to capitalize on the company's existing commercial routes to market for its H-Power generators and to support commercial development.
The reasons for the proposed fundraising and the use of proceeds include investment in H-Power 30kW generators, rollout of initial Speedy Hydrogen Solutions' orders, investment in production equipment to support manufacturing scale-up, investment in Speedy Hire Joint Venture (Speedy Hydrogen Solutions), and commercial development and corporate overheads. Any proceeds from the REX Retail Offer will be used for general corporate purposes.
The fundraising highlights include a non-pre-emptive firm placing, a non-pre-emptive conditional placing, a direct subscription with certain directors, and a REX Retail Offer. The Issue Price represents a discount of approximately 26.8 per cent to the closing mid-market price of 20.5 pence per Ordinary Share on 7 June 2024. The Directors do not currently have authority to allot the Conditional Placing Shares or the REX Retail Offer Shares and are seeking the approval of Shareholders to allot these shares at the General Meeting.
Peel Hunt and Zeus are acting as Joint Bookrunners and Joint Brokers in connection with the Proposed Fundraising, and Peel Hunt is also the Company's Nominated Adviser. Adam Bond, Chief Executive of AFC Energy, stated, "The net proceeds of the Proposed Fundraising will be used to capitalise on the Company's existing commercial routes to market for its H-Power generators and to support commercial development."
This announcement contains inside information as defined in Article 7 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse. Upon the publication of this announcement, this inside information is now considered to be in the public domain.