LONDON (ShareCast) - (Sharecast News) - Alkaline fuel cell power company AFC Energy has raised £1.066m before expenses by way of subscription for 22,214,584 ordinary shares at a price of 4.8p each, it announced on Monday.
The AIM-traded firm said the net proceeds of the subscription were expected to be used in the delivery of reference projects, working capital and other purposes to support the delivery of its go-to-market strategy.

It said that strategy was focussed on preparation for commercial deployment, and the strengthening of its supply chain.

The issue price represented a discount of 12% to the closing price of 5.46p on 20 June, the AFC board confirmed, adding that the subscription was not being underwritten, and was conditional on admission of the subscription shares to trading on AIM.

It said the subscription was being conducted under the existing authorities granted to the directors at its annual general meeting on 30 April.

The subscription shares represented around 4.8% of the company's issued share capital as enlarged by the subscription shares.

AFC Energy's board said it also agreed to grant warrants to external commercial representatives over a total of three million ordinary shares.

The warrants would be exercisable at a price of 4.8p per ordinary share, being the same as the issue price, and would be exercisable within two years following the date of grant.

AFC said the vesting of the warrants would be subject to the achievement of certain commercial targets.

"We are very pleased to have received further demand for this Subscription from both new and existing shareholders, particularly at a 60% premium to the company's last subscription announced on 12 April," said AFC Energy chief executive officer Adam Bond.

"This funding will now further support AFC Energy's go to market strategy and delivery of our targets for 2019."

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