Alternative Investment Market-quoted fuel cell developer AFC Energy was one of the best performers in the cleantech sector in October, following Linc Energy’s investment in the company. Although the share price fell back later in the month, the shares are still more than five times the price they were one year ago.
Linc invested £3 million at 17.7p a share for a 9.7% stake and a further £1.1 million was raised from a placing at 18.5p a share. The shares are now three times that price.
The Linc investment was part of a deal in which the company exercised its option to extend licence rights to AFC’s alkaline fuel cell technology. Linc has in perpetuity worldwide exclusive rights to utilise and operate AFC fuel cells in conjunction with underground coal gasification. It can also use the fuel cells in any
research application in Australia.
AFC has also signed a binding letter of intent with Powerfuel Power and B9 Coal for the development of high efficiency fuel cell power stations in the UK fuelled with hydrogen derived from surface coal gasification and/or natural gas. The first demonstration power station will be located at the Hatfield Colliery site near Doncaster, South Yorkshire.
At the end of October, non-executive director Mitchell Field raised just over £250,000 by selling shares in AFC.
Field, who sold 339,909 shares at 73.91p each, appears to have got his timing right because that is not far off the highest-ever price for the shares. Field, who still owns 1.21% of AFC, participated, together with other directors of AFC, in last December’s placing at 10p a share. At that time he bought 800,000 shares for a total cost of £80,000.
Market: AIM
Symbol: AFC
Price: 63.1p
12 month high/low: 82p/14.25p
Market cap: £111m
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