Industrial fuel cell company AFC Energy (LON:AFC) has raised £2.47mln through a subscription share issue.
Investors subscribed for 12.37mln shares at 20p a pop, which is a 28.6% discount to the mid-market closing price on the day before the share issue was announced.
Qualifying AFC shareholders will also be offered the opportunity to buy shares at the same price, with the company seeking to raise up to £1.13mln through an open offer.
Funds from the share issues will largely be deployed to enable the company to complete pre-commissioning activities in relation to Milestone 11 of the company's POWER-UP strategy, as well as supporting the short-term working capital requirements of the company, in advance of the receipt of EU grant funds by way of reimbursement of expenditure for the POWER-UP project, at Stade, Germany.
“We welcome the continued support of our major shareholders. Our accelerated timetable, towards achieving Milestone 11 and the first commercial scale operability of the KORE module, has subsequently resulted in AFC incurring a large number of project-related invoicing commitments in advance of funding being received from the EU's grant agency under the POWER-UP agreement, which we now need to fulfil,” explained Adam Bond, AFC's chief executive.
“This fund-raising therefore addresses any potential shortfall during this period as well as supports AFC Energy's short-term working capital requirements.”