http://www.afcenergy.com/

Dawnay, Day Corporate Broking Research Note

Aim Admission Document

Yours?

No not mine, although if I had a few spare quid I might consider topping up a bit, although for a so called energy company, the only certainty is that the continual decline in the sp is sapping mine.

Yesterday I sent the following e-mail to AFC,

Whilst I appreciate that the company can not give sp sensitive information to individuals, could the company at least put out a news release re the continual downward trend of the share price.

Many investors feel as I do that we are not being informed adequately.

EXAMPLE.......An update on the fuel cell trials which last gave the 12 month results is not adequate.

As the e-mail address is not easy to find, see below,

info@afcenergy.com.An e-mail

I received a reply stating that the e-mail had been forwarded to EW, I will update when received.

And the sp continues its downward trend again today!!!!!!!!!!!!!

I keep reading on another site that the drop in the SP is down to Scaremongering, but I feel the main ingredients of scaremongering is the current and ever decreasing share price.

As AFC are the largest holding in my portfolio, being nervous re how this will eventually turn out is starting to become par for the course.

Saying that, it seems strange to me that the offer price was 13.25p when sells were 293,000 and went upward to 13.50 then to 14.00p as the sells increased to 1,050,370 without any recorded buys in between, normally as sells increase with no comparative buys the offer price tends to drift downward.

Probably wrong (I usually am) but it looks to me like the MM's have an order to fill and are putting off us poor PI's as usual.

The ways of the market are indeed strange.

Did you get a reply to your email?

Hi Skinny,

No, I was going to wait till week-end to post, but rest assured I will post if I do receive a reply.

Hopefully they are too busy and its not a case of more mushroom treatment!

NOTE............I once grew mushrooms and found that if you cover them too much in the brown stuff they wither and die.

Yes - nobody minds a bit of bull, but when the smell becomes over powering.....!

Answers on a postcard....

RNS Placing and open offer.

That wasn't leaked then! Bloody AIM.

Proposed Placing and Open Offer

AFC Energy (AIM: AFC), the industrial fuel cell power company, is pleased to announce a conditional placing with institutional and other investors of up to 52,000,000 ordinary shares in the Company at an issue price of 10p per share to raise up to £5.2 million of initial proceeds (the "Placing"), including a placement of 22,000,000 ordinary shares with Lanstead Capital LP ("Lanstead"), further described below. In addition to the Placing, the Company proposes to raise up to a maximum of £3.88 million by way of an open offer to be made to all qualifying shareholders in the Company of new ordinary shares of 0.1 pence each in the capital of the Company (the "Open Offer Shares") at the issue price of 10 pence per share (the "Open Offer"). The maximum aggregate value of the fundraise is therefore £9 million.

The Open Offer is proposed to be conducted on the basis of 4 Open Offer Shares for every 23 existing ordinary shares held by qualifying shareholders, with the opportunity for qualifying shareholders to apply for additional shares not taken up under the Open Offer by other qualifying shareholders. The Company expects to be in a position to announce further details of the proposed Placing and Open Offer shortly.
As part of the Placing, the Company announces that it has, subject to the signing of definitive documentation, agreed that 22 million new Ordinary Shares be placed at an issue price of 10 pence per share with Lanstead (the "Lanstead Placement Shares") for an aggregate consideration of £2.2 million. In addition, the Company will enter into Equity Swap Agreements with Lanstead which allow the Company to retain much of the economic interest in the Lanstead Placement Shares. The Equity Swap Agreements will enable the Company to secure much of the potential upside of future potential share price appreciation arising from the Company's development.

The Equity Swap Agreements will provide that the Company's economic interest will be determined and payable in 18 monthly settlement tranches as measured against a benchmark price of 13.33p per share (the "Benchmark Price"). If the measured share price exceeds the Benchmark Price, for that month, the Company will receive more than 100 per cent. of the monthly settlement due on a pro rata basis. There is no upper limit placed on the additional proceeds receivable by the Company as part of the monthly settlements. Should the measured share price be below the Benchmark Price, the Company will receive less than 100 per cent of the expected monthly settlement on a pro rata basis. Of the aggregate proceeds of £2.2 million (before expenses) from the issue of the Lanstead Subscription Shares, the Company will use approximately £330,000 (15 per cent.) for investment in its continuing operations and £1.87 million (85 per cent.) for investment in the Equity Swap Agreements as described above. In no event would a decline in the Company's share price result in any increase in the number of Ordinary Shares received by Lanstead or any other advantage accruing to Lanstead.

Ian Williamson, Chief Executive of AFC Energy, commented: "We are pleased to announce that we have arranged a significant funding package for the Company. Importantly, the package is being structured so that existing qualifying shareholders can participate in the fundraising on the same terms as institutional investors in the Placing. In addition, through the proposed Lanstead placement, the Company has the opportunity to benefit from further appreciation in its share price over the next 18 months. This funding enables us to deliver our Power Up project and continue our plans to open commercial markets."

More proof that the market, especially the AIM leaks like the proverbial sieve.

It has been so obvious of late due to the way the sp has been acting, that something like this was coming, also obvious is that certain investors not including us poor PI's knew about it in advance.

But looking at the deal with Lanstead Capital LP re the Equity Swap Benchmark Price, it does look like those in the know (again not us poor bloody mushrooms) are very confident due to what they, not us have been told.

If anyone believes that that all investors are equal in what they are privy to, they live in dreamland!

Read the bottom of the RNS (doesn't C+P well) after "
Related Party Transactions

A number of Related Parties as defined in the AIM Rules will be participating in the Placing. "

Is this going to get hit again or will this be a low point.

Victim,

It looks like we have all been victims of late re this.

I think they currently have @224million shares in issue, so + another 52m + 38.8m.

I don't think placings and open offers have ever done me much good in the past.

Another smack in the teeth, I think any new investor days could be frosty, that's if anyones interested . So 18 months poss to wait.

Leak, what leak?

May be in the minority here, but I feel that the sp will start to walk back up with punters wanting more shares so that they can obtain more at the 10p mark re the 4 for 23 deal.

Of course it could have come from that Lanstead lot.