AIM listed Ceramic Fuel Cells (LON:CFU), the Australian company behind the development of high efficiency and low emission electricity generation units, has raised £10.0m in a share placing priced at 10.5p. The funds will be used to take the company to the next stage of its commercial development, including scaling up production to meet expected future demand including working capital and manufacturing investment.

The fundraising saw Ceramic Fuel Cells place 59,523,811 new ordinary shares with institutional investors together with a subscription of 35,714,285 new ordinary shares with a cornerstone investor in the UK. The company is now planning to invite existing shareholders to participate in a further fundraising at the same issue price by way of a rights issue in Australia and New Zealand and an offer to shareholders in other qualifying jurisdictions. The Rights Issue is non-renounceable and will raise up to A$21.5m (£14.5m), at an issue price of 18.25 cents per share. The overseas offer will be up to approximately £2.06m at an issue price of 10.5 pence per share.

Ceramic Fuel Cells said it was raising the new cash in order to press ahead with full commercialisation of its products. During the last 18 months the company has finished developing its small scale fuel cell products and has now received orders for 51 of its BlueGen units from utilities and other foundation customers across Europe, Japan, Australia and the US. It also has integrated power and heating mCHP units operating in Germany, France and the UK. The cash boost will cover the working capital required to scale up production of fuel cell products to meet expected future demand and capital investments in its facilities and investments in value engineering to further reduce the unit cost of its products.

Elsewhere today, Ceramic Fuel Cells published its full year results, with revenues from operations rising by 21% year-on-year to £1.2m while net losses fell to £11.3m from £24.3m previously. Operating costs remained broadly flat at £12.4m as did net operating cash outflow at £9.9m.

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here