AFC Energy Expands Partnership With ABB, Raises GBP36 Million -- Update
April 16 2021 - 5:08AM
Dow Jones News
--AFC Energy has expanded its partnership with ABB to work on
the data-center market
--The hydrogen technology company raised GBP36 million via a
share issue, more than expected
--The funds raised include a GBP3.2 million investment from
ABB
By Jaime Llinares Taboada
AFC Energy PLC said Friday that it is expanding its partnership
with ABB Schweiz AG and that it has raised 36 million pounds ($49.6
million).
AFC, which provides hydrogen-power technologies, said ABB will
invest GBP3.2 million in the company. In addition, the companies
have agreed to expand their partnership, which focuses on
electric-vehicle charging systems, to include solutions for data
centers.
"Embarking on this new collaboration with AFC Energy opens the
possibility to integrate its impressive fuel-cell technology with
ABB's strong data center solutions," Brian Johnson, global data
center leader at ABB, said.
In addition to ABB's investment, AFC had expected to raise
GBP1.5 million from Dutco and GBP30.2 million from institutional
investors. However, AFC's offering was oversubscribed.
The company raised total proceeds of GBP36 million instead of
the GBP35 million it originally expected, including Dutco's and
ABB's investments.
The issue price for the fundraising was 64.5 pence, representing
a 5% discount to AFC shares' 68-pence closing price on
Thursday.
AFC said the funds will be used to support the development of
AFC's and ABB's high-power electric-vehicle charging products. The
money will also be put toward developing new power products
utilizing AFC's alkaline fuel-cell technology including the global
data-center market, and the development of the company's scalable
manufacturing capacity, it said.
Shares in AFC at 0810 GMT were up 2 pence, or 2.9%, at 70
pence.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
April 16, 2021 04:53 ET (08:53 GMT)
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