Massive discount to institutional investors
30 April 2013
CFCL Funding Update
Ceramic Fuel Cells Limited (AIM / ASX: CFU) a leading developer of generators which use fuel cell
technology to convert natural gas into electricity and heat for homes and other buildings, provides
the following further update to shareholders on its fund raising activities.
The Company has received in principal commitments from institutional investors in the UK to raise
an amount of GBP 4.3million (AUD 6.5million), subject to the finalisation of transaction documents
with each of them. This documentation is expected to be completed over the next 2 days. The
amount to be raised may increase further over that period.
The fundraising will be constituted by the issue of both new ordinary shares and secured
convertible loan notes. The notes will have a 3 year term, a 9% per annum coupon rate (payable
quarterly) and can be converted into equity at anytime at the holder’s election. The issue price of
the new ordinary shares and the conversion price for the loan notes will be 2.14 pence per share
(approximately 3.2 cents).
The Company proposes to convene an extraordinary general meeting of itsmembers to approve
certain elements of the capital raising and in particular, the grant of security over the Company's
intellectual property to secure repayment of the convertible loan notes.
In addition to these funds, the Company expects to receive a further AUD 5.0m (GBP 3.3m) in cash
from the Australian Government around the middle of the year in relation to a tax refund. This
amount arises as a refundable credit in relation to the Company’s FY12 Research & Development
expenditure that is claimable for tax purposes.
The Company will provide further details on the fund raising in the next few days.
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