AFC Energy PLC (AIM:AFC, OTC:AFGYF) has raised £13.5 million of new capital, with the proceeds earmarked to support its roll-out of hydrogen generators for Speedy Hire.
A share placing and subscription was oversubscribed, it said, and a further £2 million of shares will be sold to retail investors on the REX platform.
Some 91.279 million new shares are being issued at 15p each in the placing, with another 17.2 million sold via the subscription.
The net proceeds from this fundraising will be used to invest in H-Power 30kW generators, supporting the roll-out of initial orders from Speedy Hydrogen Solutions and future orders from TAMGO.
Additionally, the funds will be allocated towards production equipment to scale up manufacturing and the Speedy Hire joint venture.
"We are pleased to announce the successful completion of our oversubscribed placing and subscription, subject to shareholder approval at the upcoming general meeting," chief executive Adam Bond said in a statement.
“I would like to thank all our existing and new shareholders for supporting this raise and we welcome the participation of our retail investors through the REX Retail Offer.
“We look forward to reporting on the build-out of our inventory and delivery of H-Power Generators into the field as we continue our drive to displace diesel generators and be at the forefront of the industry as the transition gains momentum."
Bond, previously, with the launch of the placing yesterday evening, said: "2024 is all about delivery at AFC Energy.
“Having accelerated our next generation H-Power technology platforms and secured commercial routes to market through our partners and customers, including Speedy Hire, we are looking to secure funding to build out our inventory and fast-track delivery of H-Power Generators into the field.
“This builds on those H-Power Generators that have already been sold to Speedy Hydrogen Solutions and provide further buying power to drive down component and system costs as we scale our production capacity.
“The drive to displace diesel generators continues to accelerate and we aim to be at the forefront of industry as the transition gains momentum."