http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

18p - 3.50p

Jam tomorrow it seems for some of you holding for long term and waiting for the share price to do better.

My strategy to wait for the cycles of the share price and then take profits, has worked so far as the company strategy is not yet well clear.

Bought some at 20p

Chart of the last couple days is giving a signal of the low on this cycle has been reached on the spike last Friday ( 4 days ago).

AFC Energy shares could rally up to 30p says technical analyst Zak Mir - 12:10 31 Oct 2016

AFC Energy plc (LON:AFC) has recently been on the front foot in terms of its ‘fundamentals’ and that’s reflected in the fuel cell group’s share price, according to technical analyst Zak Mir.

The chartist says the chart shows a ‘quite encouraging situation’ and, significantly he reckons the price can rally nearly 50% before the end of the year.

Whilst in the immediate term he expects the price to consolidate at current level of 17p, he expects a move higher (above 19p) could spark a run up to around 30p per share before the end of 2016.

Http://www.proactiveinvestors.co.uk/companies/stocktube/6291/afc-energy-shares-could-rally-up-to-30p-says-technical-analyst-zak-mir-6291.html

AFC Energy Successfully Completes Generation 2 Fuel Cell Testing -
Achieves Milestones 1 and 2 of 2016 Strategic Milestones and Demonstrates Ability to Operate on Lower Grade Hydrogen

AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce that it has successfully completed the development of its Generation 2 ("Gen2") fuel cell system. The Gen2 system incorporates design changes to extend the operating life of the fuel cell stack whilst increasing stack availability* and reducing stack cost. These features represent three of AFC Energy's key metrics of commercialisation, relative to the KORE fuel cell system commissioned in Stade in January 2016.

The successful delivery of the Gen2 design follows testing of multiple fuel cell stacks at Stade, Germany and Dunsfold, UK, to deliver power continuously for a period in excess of one month, each at high levels of availability. Two of these stacks continue to generate power today.

Confirmation of the Gen2 stack design improvements, and testing multiple stacks continuously in excess of one month, have together successfully delivered Milestones 1 and 2 of the Company's eight 2016 strategic milestones (in addition to those achieved earlier in the year) announced in March 2016 and are therefore key to being able to meet the expectations of project partners.

The improved Gen2 technology platform reflects the efforts of AFC Energy's technical team this year and is the sole application of proprietary AFC Energy technology.

Collaboration with the Company's Joint Development Agreement ("JDA") partner Industrie De Nora S.p.A. ("De Nora") has created material opportunities for further improvements to AFC Energy's technology package, as demonstrated by work undertaken with De Nora since August 2016.

In addition to the Gen2 fuel cell stack demonstration, the Gen2 testing programme demonstrated a further two key incremental outcomes, which show that AFC Energy's fuel cell system is:
1. capable of accepting lower grade hydrogen relative to the laboratory standard hydrogen (99.999%) that has been used at the Company's testing facilities since 2006. This provides multiple key advantages including the opening up of new lower grade hydrogen source opportunities and partners internationally, thereby increasing AFC Energy's addressable market potential, whilst also lowering the likely cost of hydrogen in commercial applications. Lower priced hydrogen will directly affect the cost of electricity generation and the economics of AFC Energy's system across different market segments internationally; and
2. cycles (on and off) with total operation of a cycled stack for over one month at greater than 90% availability (albeit with expected gradual levels of degradation after each cycling event).

More details of each Milestone are provided in the Appendix.

Adam Bond, AFC Energy's Chief Executive Officer, said:
"The accelerated and diligent progress AFC Energy has made over the last nine months in delivering our Gen2 fuel cell system has been remarkable. The technical progression achieved materially supports our discussions with prospective commercial partners and in being able to utilise lower grade hydrogen has the potential to reduce the final cost of electricity generation from AFC's systems. These two milestones, in addition to those achieved earlier in the year, positions us for delivery of commercial contracts which we continue to pursue and in turn provides the traction needed with our partners for the deployment of units and the fulfilment of the outstanding 2016 milestones.

I would like to take this opportunity to thank AFC Energy's technology team, the Air Products team in Stade, and plantIng for their efforts in achieving these milestones and for their commitment to supporting AFC Energy's product development and validation at Stade."

⃰ Defined as the amount of time the fuel cell stack is available to generate power over a given period of time.

Not knocking this RNS, as there is nothing to knock, it's all good.

So my main worry is that AFC continue to advance the fuel cell, whilst holding back from putting it out to potential customers.

I would have thought that as there is a queue of such potential customers (according to RNS's years ago), it shouldn't be more than a couple of weeks before a contract is signed.

I think apart from the lack of such a contract along with the possibility of continuing to improve before becoming a commercially sold product, is what has stopped todays news resulting in an SP much higher than at present.

If AFC delay commercialisation every time an advancement in their fuel cell is achieved all they will end up with is the best fuel cell possible that is left sitting on a shelf, awaiting yet another improvement.

StockMarketWire.com
AFC Energy has signed an agreement with Peel Environmental Limited to assess the techno-economic feasibility of the UK's largest hydrogen fuel cell precinct at Peel's Protos industrial park.

Protos is located between Manchester, Liverpool and Chester and will deliver 250 hectares of industrial development in the North West of England.

It represents a strategic cluster of businesses encompassing energy intensive industries with associated supply chains and importantly, reflects Peel's vision for an energy generation hub that provides secure, low carbon and low cost energy generation to its onsite facilities.

AFC Energy will conduct the assessment in collaboration with Peel and other third party partners to review a range of hydrogen sources and offtake arrangements and work with local stakeholders that will see a proposed phasing of fuel cell projects at Protos commencing at 1MW through to an estimated 35MW to 50MW of installed capacity at the site.

I appreciate the patience required a bit more when I look at the following,

http://www.fuelcelltoday.com/history

Note that the timeline starts at 1801 and the final date is 2009.

Be nice if the next entry is 2016/17 'AFC Fuel Cell takes the world by storm', with ABs name credited to it.

Remember that classic Guinness advert 'Good Things Come to Those who Wait' where patience is rewarded.

Well I am looking more and more like that bloke on the surfboard as I wait.

Hopefully that long awaited wave is coming!


https://www.youtube.com/watch?v=Y9znA_dwjHw

If you have 8 minutes to spare, this is the CEO of AFC being interviewed:

http://www.proactiveinvestors.co.uk/companies/stocktube/6503/afc-energy-plc-to-play-its-part-in-the-northern-powerhouse-initiative-6503.html

I bought some at 16p a bit earlier there was only 10K on the offer side order book, so they were asking for premium of 16.2p at the platform, ask the broker to go to the Market at the limit 16p on a T+20 and got it.

Lets see if more of the losers can be recoup, before the end of the day

The last couple days large falls got the stock well under the lower Bollinger Band, at this point they say is buying opportunity, before it goes level with the band, though it can keep dropping

17.375p +1.375p

The UT refuse to be activated today and the large spread was not a happy thing for the investors following the stock

as there was not a closing UT then the middle price is taken as a closing price 17.375p
spread 16.25 v 18.50p

The smaller spread with lower offer price has encourage some buyers and now there is a movement up that goes with the last few days after reaching a low last week.

With time everything will be alright

Spread 16.50 v 17p compare to yesterday's 16.25 v 18.75p

AFC 17.25p +0.75p

a 200K buy earlier is encouraging some buyers as there is some volume today

From earlier - Appointment of Chief Operating Officer

A very good post from " Eadwig "

re - today's RNS

"thereby also opens the door for a salary increase for him?)"

Very likely. It will also automatically give him more clout when dealing with partner companies.

New leadership team announced in the Sept newsletter, including:
"the new position of Head of Technical & Operations. Christopher has provided an excellent contribution to AFC over the past six years leading much of the work undertaken in the area of manufacturing and quality control, as well as providing leadership roles across several areas of the Company, including significant contributions to the fuel cell development team. In particular, Christopher is leading AFC's Joint Development Agreement initiative with De Nora"

"Nick Ploumis, who has been with AFC since 2014 as Project Manager and led the successful project management and delivery of the POWER-UP project in Stade becomes our new Head of Projects. Nick also assumes responsibility for AFC's project-related business development activities, including managing the plantIng strategic engineering partnership."

Replacement of the FD by someone with an impressive CV and energy industry experience.

and now "Jim Gibson to the board as chief operating officer with immediate effect.
He has has almost 30 years' experience in operations management and business development roles for the engineering contracting sector and particularly within the APAC region"

Every sign that the company is gearing up for one or more projects requiring oversight of production and close liaison with production partners.

I posted some time ago how setting all this up would take time - and very likely finance too, depending on the partnership agreements.

If there was nothing in the offing, it would be strange indeed to re-arrange this part of the business which will be vital to managing production quality and deliveries.

Stranger things have happened at AIM companies, of course. Not least to up people's salaries before accepting some kind of final salary pension or some other skulduggery. I don't think we are in the realms of that with AFC. Not that it is anything more than a feeling on my part.

I think this is all pointing the way to a shift in balance from product development to production and delivery. Exactly what i would have hoped to see possibly 3 months ago.

I've added recently, and I may well take the opportunity to average down further. Risky, of course. You would expect all these positions to be in place before any new cash was raised to fund any contract also. But even so, that still would mean a contract and revenue streams, the all important life blood of any company that doesn't intend to be funded by R&D handouts indefinitely.

AFC must realise they have to bite that bullet sooner rather than later, or risk being left behind, perhaps even by lesser technologies that simply beat them to the market place, That would be galling indeed.

AFC has been a sleeper for 2/3 years already
i only have small number, and those are in my sipp
i'ld like to think that the company (sp) will zoom away in due course, but the longer things fail to materialise, the less optimistic i become

How much are they worth now more to the point. Not a lot I would suggest!!!!

AFC Energy, the industrial fuel cell power company, is pleased to announce its intention to conduct a fundraising of up to approximately £8.1 million (before expenses) through a proposed placing of 58,500,000 ordinary shares of 0.1 pence each ("Placing Shares") (the "Placing"), a proposed subscription of 1,500,000 New Ordinary Shares (the "Subscription") and a proposed open offer of up to 20,684,262 New Ordinary Shares (the "Open Offer"). The New Ordinary Shares will rank pari passu in all other respects with the Company's existing ordinary shares of 0.1 pence each (the "Existing Ordinary Shares").

The Placing of New Ordinary Shares is being offered by way of an accelerated bookbuild ("Bookbuild"), which will be launched immediately following this announcement. Cantor Fitzgerald Europe ("Cantor Fitzgerald") will be acting as bookrunner. The Company will also make up to 1,500,000 New Ordinary Shares available for subscription directly from certain key shareholders (the "Subscription").

In order to provide Shareholders who have not taken part in the Placing or Subscription with the chance to participate in the Fundraising, the Company is providing all Qualifying Shareholders with the opportunity to subscribe at the Issue Price for an aggregate of 20,684,262 New Ordinary Shares, to raise up to approximately £2 million, on the basis of 1 New Ordinary Share for every 15 Existing Ordinary Shares on 13 February 2017 (being the last practicable date before publication of this announcement).

The Issue Price represents a discount of approximately 40 per cent. to the mid-market closing price of 16.75 pence on 13 February 2017. The Fundraising is not being underwritten and is conditional on, inter alia, on the passing of the Resolutions by Shareholders at the General Meeting of the Company to be held at Chelsea Football Club, Stamford Bridge, London SW6 4HS at 11.00 a.m. on 3 March 2017.

The Company has obtained irrevocable undertakings from certain shareholders, including the Directors, to vote in favour of the Resolutions in respect of, in aggregate, 60,905,313 Ordinary Shares, representing 19.6 per cent. of the Existing Ordinary Shares in issue.

The New Ordinary Shares will represent approximately 20.6 per cent. of the issued share capital of the Company as enlarged by the Fundraising (the "Enlarged Share Capital").

Further information on the Fundraising is contained within the Circular which is expected to be posted to Shareholders tomorrow.

This is getting embarrassing , are we being strung along , and why 10p why not 15 or 16 p . No news to help us either , when do these people think of shareholders .