AFC Energy Expands Partnership With ABB, Raises GBP36 Million -- Update

--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 [e-mail]; @JaimeLlinaresT

(END) Dow Jones Newswires

April 16, 2021 04:53 ET (08:53 GMT)

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