Proceeds will allow volume orders with suppliers, further engineering
By Toni Weeks
San Diego, Nov. 4 - Ceramic Fuel Cells Ltd. said it has completed a private placement of stock, selling 54,559,999 ordinary shares for proceeds of £3.82 million. The company raised £3.22 million by placing 45,988,571 ordinary shares at 7p each with underwriter Nomura Code Securities Ltd. and another £600,000 by selling 8,571,428 ordinary shares at the same price to an existing private investor.
The per-share price is a 8.14% discount to 7.62p, the closing share price on Nov. 4.
Proceeds will provide the company with working capital to leverage economies of scale by placing volume orders with suppliers and to implement further value engineering to drive down manufacturing costs.
Ceramic Fuel Cells said it will also invite existing shareholders to participate in a further fundraising at the same issue price by way of a one-for-four rights issue in Australia and New Zealand and an overseas offer to shareholders in the United Kingdom and other jurisdictions. The rights issue is non-renounceable and will seek to raise up to A$ 21.7 million at an issue price of A$0.108 per share. The overseas offer will seek to raise up to £2.15 million at a price of 7p per share.
Ceramic Fuel Cells uses solid-oxide fuel cell technology to provide low-emission electricity from natural gas and renewable fuels and is based in Noble Park, Victoria, Australia.
| Issuer: | Ceramic Fuel Cells Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | £3,819,200
|
| Shares: | 54,559,999
|
| Price: | 7p
|
| Warrants: | No
|
| Underwriter: | Nomura Code Securities Ltd. (for £3.22 million)
|
| Settlement date: | Nov. 4
|
| Stock symbol: | London: CFU
|
| Stock price: | 7.62p at close on Nov. 4
|
| Market capitalization: | £92.11 million
|
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