AFC Energy raises £1.4m to help it through Covid-19

Hydrogen power generation technology company AFC Energy has raised £1.4m before expenses from an existing institutional shareholder, it announced on Monday, via a subscription of 14 million ordinary shares at 10p each.

The AIM-traded firm said the subscription would provide it with additional financial liquidity from one of its primary shareholders to see it through the possibility of a prolonged Covid-19 coronavirus pandemic in the UK, reconfirming its update to the market on 19 March.

It noted that the issue price represented a discount of 18.7% to the closing price of 12.3p on 19 March, and said the subscription was not being underwritten and was conditional on admission of the subscription shares to trading on AIM.

The subscription was being conducted under the existing authorities granted at the annual general meeting on 30 April.

AFC said the subscription shares represented around 2.9% of its issued share capital, as enlarged by the subscription shares.

“Application has been made to the London Stock Exchange for the subscription shares to be admitted to trading on AIM, and it is expected that such admission will occur at 0800 GMT on 26 March,” the board said in its statement.

At 1445 GMT, shares in AFC Energy were down 7.59% at 12.94p.