CORRECTED - AFC Energy gets GBP-8.7m equity investment

Oct 11, 2012 - UK fuel cell maker AFC Energy Plc (LON:AFC) today said it had secured a GBP-8.67-million (USD 13.9m/EUR 10.8m) strategic equity investment from Ervington Investments Ltd.

The ultimate beneficial owner of Ervington is Roman Abramovich and the company is associated with Millhouse LLC, an investment advisory firm to the Russian businessman, according to the announcement.

AFC Energy said the funding would strengthen its balance sheet and give it additional cash to invest in its fuel cell technology over the coming several years and execute its long-term growth strategy. It would boost the company's cash balance to GBP 11.2 million.

The investment came through the issuance of around 32.6 million AFC Energy shares at GBP 0.266 apiece, giving Ervington 15% of AFC Energy's enlarged share capital. The net proceeds from the deal are GBP 8.27 million.

"Ervington's support not only enables us to take full advantage of our commercialisation plans expeditiously but will also provide us with high level access to energy users and potential partners globally," AFC Energy chief executive Ian Williamson said.

(GBP 1.0 = USD 1.605/EUR 1.241)

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