AFC Energy Live Discussion

BumbleB 03 Dec 2019

December 6th 2019. AFC launch first commencial product I am looking forward to Friday. It has been near ten years of long slog investing in AFC and now it appears that they have a product they are confident enough about to take to market.

Eadwig 22 Nov 2019

todays movements Ripley94: Did you top up again ? No, I was thinking about it but had a lot going on here today. Sold some of my PRSM this morning, didn’t hit the high but did get more than 100p above the closing price. 60% profit in 5 months, will probably hold the rest into Jan when the full results are reported. I never did figure out why the market halved their value earlier in the year. I bought in at a bad entry point, but traded it quite well and getting the rewards now after they reported customer growth of 69% and revenue growth of 79% (I was expecting more, to be honest, but the markets seem to like it). After that I spent a lot of the day running about preparing for my daughters birthday party tomorrow. Know nothing about KRS, sorry mate.

Ripley94 22 Nov 2019

todays movements HI Eadwig Did you top up again ? What a mess up with KRS … different brokers different info ??

Eadwig 22 Nov 2019

The cash call argument Lots of people are predicting a cash call by AFC to fund going to market, even though they already had one and are going to market with the first products in December. I was asked on another board about this and the reply went on a bit, even though I kept it short because it was off-topic. So I thought I’d repeat it here for anyone who is interested or wants to discuss it further. @PrefInvestor1 asked, “Commercial level deployment of their EV chargers is clearly going to need a lot of money and people that a small R&D company isnt going to have” That is true, but they have partners, very large ones, who are taking on various things including setting up manufacturing for the anodes and cathodes which are the parts that will need to be replaced regularly, as I understand it, and produced in runs of tens of thousands at a minimum. De Nora, an Italian company is the partner for this, they are already the major global manufacturer of anodes and cathodes and have plants around the world as I understand it, certainly in Europe and the Americas. A cash call is certainly possible, it will depend on the business model and cash flows and who is contracting to supply what under what terms - and contracts/sales achieved. There was £2m almost raised earlier in the year to get these products to market and that was entirely predictable, plus another £0.5m out of the blue earlier this week (which killed the price rise). Last time a major cash call happened investors were allowed in at the same price as the institutions and that provided a very nice profit for those who chose to take it - despite the offer price being a whopping 60% below market price which was excessive, I thought. The cash calls this year have been private affairs with something more like a 20% discount to market price and no chance for P.I.s to get involved. If there is to be a cash call in future and I’m still holding, I want the option to be in on it. Whether or not there will be one and when is all going to depend on the above variables, which we don’t know. A lot of the chatter about it is by jealous people who missed out on the recent rise and like to worry holders into selling … or whatever their motivation is. Unfortunately you get a lot of that around AIM companies. I also think there is a very good chance of the company being bought out to take control of AFC’s I.P. which was miles ahead of the competition. I’m not sure how far ahead it is now, and it probably depends on which product and application of said product you are talking about. For a company like Shell to take over AFC and develop the fuel-cell market - and provide the fuel - would be a minor thing cost-wise and would give the many brownie points with the environmentalists. as well as future diversification. Not an inconsequential matter with $Trillions already under management by funds working to new, ethical standards (see my thread on same). AFC look like they’re well ahead of the competition in using Ammonia as a fuel source which doesn’t have to be held under pressure and has a lot more energy per unit of volume than hydrogen gas, another selling point for the potential investor or takeover predator. The possibilities for hydrogen fuel-cells are suddenly being taken very seriously from ‘local grids’, tanker, ferry and container ship power, storage of power from intermittent sources such as solar and wind, straight use of waste hydrogen to fuel the national grid (AFC are miles ahead there, they can use much dirtier hydrogen than any other commercial fuel cell) and the list goes on and on, backup power where diesel generators are currently used, including ‘stand alone’ products like cell phone towers that are well off the conventional grid. Many of these are BIG markets with big players operating in them who may want to insure they have a foot in any hydrogen economy developments, One new membrane product AFc developed simply to solve one of their own development problems has given them a whole new product line, apparently more efficient than anything on the market at present, in a market supposedly already worth $1bn p.a. … and those are just the ones I can immediately think of without going into cars or trains or buses etc which I don’t think AFC are likely to target those markets (trains, possibly, but I don’t see it myself). First products hit the ‘shelves’ in December, another, larger power plant June 2020 and the big generation plant which is stating to get to multi-mW levels sometime after (date on web site, but in 2021 I think). Remember AFC already have 10 years of cutting edge development in. Any cash required is likely to be going to fund orders from here on in, which is an entirely different proposition to a cash call for hopeful development purposes and will necessarily be costed out with sales projections etc. By that point it will all be getting a bit boring, I suspect. We will soon be getting our first answers to many of the questions posed above, I suspect. December 6th. A big date for the diary for any holders.

Eadwig 20 Nov 2019

todays movements marktime1231: which may be profit taking ahead of the new shares going live. They’re only about 0.6% of total shares so I don’t see them moving the needle by their volume. It is the price paid that now gives an indication to the market, rightly or wrongly, that @20p is around a minimum price for the stock. No accident they finished just about at that point today. marktime1231: When might there be an announcement, a soft one about an order prospect will do or a hard one with some operational and financial data. Did someone suggest at a forthcoming AGM or market event? The December 6th shareholder event to launch the EV charging product is also for ‘partners and customers’. That is interesting because as far as we know there are no customers for this product as yet, officially (I.e. no RNS announcements of any contracts etc with regard to E.V. charger). With the ramp up in P.R. activity as well as the cash raise two days ago and twice earlier in the year, specifically to take a product to market, and the announcement that the HydroX-Cell (L20) product is available from December this year, my guess is that there will be an RNS and/or press release announcing the first sales/orders on the shareholder day. How much info in terms of customer numbers, cost of sales, expected revenues, when revenue will start to flow etc will probably not all be available at that event. As I’ve said before we’re not even sure of the business model … I get the impression AFC want to retain ownership of all their products and lease or rent them to customers while AFC maintain them. I’m not sure I like that business model, especially long term for this first smaller unit going on sale, but I have to admit that it is probably the safer way to go initially as the first few customer installations may not have a warranty and may need to be tweaked etc etc. They are also likely not to be individual unit sales, but a whole bunch of units, say to a service station network, as an example, the kind of customer that is going to want after sales service and no hassle from these units that they have to deal with themselves. It will take a while for all this information to come together before we can start to cost AFC like a normal business, right now no one knows if @20p per share is a bargain or over-priced. This is why i attempt to take profits as we go along. Later, if i like the business model and think AFC are still ahead of the competition, of which there is plenty, I’m quite prepared to re-invest based on that business case rather than speculating on the potential as we are now (and I have been over the last 4 years i think it is now). The one thing we can be certain of is that AFC are coming to market with at least one potential mass-market product this December and they are set up ready to provide sales and, it looks like, after sales service too. That is a game changer for this company if it is in anyway successful, with more products still to come in entirely different sectors, potentially up to very large power plants tailored to the needs of the customer, all timetabled to come online over the next 18 months or so, all starting December 6th! Exciting times for holders and the company.

marktime1231 20 Nov 2019

todays movements Eadwig: assuming genuine commercial contracts are about to be announced Yes that is what I meant. The sp might slide to ??? if we don’t get the expected commercial announcement to follow this share issue at 20p. This morning AFC have traded in the 16s and 17s before recovering to 20p, which may be profit taking ahead of the new shares going live. When might there be an announcement, a soft one about an order prospect will do or a hard one with some operational and financial data. Did someone suggest at a forthcoming AGM or market event? This is worth a gamble if the price dips to … well I think 18p was a good guess, but I am still watching.

Ripley94 20 Nov 2019

todays movements AFC… XXXX Just read this Eadwig. I did read something from you which came through to phone earlier. We do seem to have the same notions , i see you also have different accs . I have/ had one with SVS… i have an old friend who thinks all the buying and selling a waste of time ( his life you could say ) Well in that acc i have been forced to do nothing and wait it will be interesting to see if i am just as well or not for it ? My thoughts at present is that might be the case none AIM shares. But then again i averaged down SXX ( he holds that in common with me he only looks every six months or so ) . In that case adding more … he was better not to . But my average is now nearer his … he got in years earlier around 8p .

Ripley94 20 Nov 2019

todays movements AFC… XXXXX I had a buy limit in for 18p ( D )…getting back my last smaller slice . Lifted @ 9.30am . I do have that first tranche in ( T ) which is why i thought log was out . I was all out in ( D ) … it is a job keeping up

theprior 20 Nov 2019

todays movements -21% now we may have a top up!

Eadwig 20 Nov 2019

todays movements marktime1231: Feel like I have missed out on AFC and I wonder if the 20p listing will bring an entry point … no news and a slide to ? There was news! They raised a quick £0.5m, that they couldn’t have planned on this time last week, to help fund orders for CUSTOMERS. That is how I read it, anyway. There has been no news about any customers for this product previously. I actually added @21.74p in a different account late yesterday with a modest target of 15% by the end of the 2nd week in December. I might be over-greedy here, but I’m overdue this size of win and have catching up to do on my overall targets (which are 15% average return every year). As someone just paid @20p for shares in the placing I’m assuming there isn’t too much downside from here. I had a tranche ready to sell at 600% profit yesterday and actually cancelled it early on and tried to get more around @28p. I pushed it just that little too far and missed out, however, I’m hoping that wasn’t the top … like I say, I may have got too greedy here. Overall though, I think the pullback yesterday was ‘healthy’. We still don’t really know what the AFC business model is and for which products and at what speed they can bring the existing products to market after an order, so very difficult to know if the company is being valued properly assuming genuine commercial contracts are about to be announced as I believe. marktime1231: Where does AFC get its H2 for the fuel cell generator, how does it get stored and shipped … gas compressed in cylinders (very strong ones?) or liquified requiring very cold temperatures? Is hydrogen embrittlement still a problem? Safety issues? You need to read up on their break-through with using ammonia in liquid form at no pressure. Check out the new web site which has the products (and launch dates for some) laid out clearly in the various areas they are targeting. D>Y>O>R.

marktime1231 20 Nov 2019

todays movements Feel like I have missed out on AFC and I wonder if the 20p listing will bring an entry point … no news and a slide to ? Who was the mystery buyer! Why is it a secret! Where does AFC get its H2 for the fuel cell generator, how does it get stored and shipped … gas compressed in cylinders (very strong ones?) or liquified requiring very cold temperatures? Is hydrogen embrittlement still a problem? Safety issues? Or can the H2 be made locally, keep a reservoir topped up using trickle power from off-peak wind and solar and the fuel cell turns that into a rapid charge on demand? How about cutting out the H2 part of the process and just processing the electrons eg a clever battery store on trickle charge like the Tesla powerwall, or whatever is coming next based on graphene, with the ability to transfer a big charge to the EV rapidly. Sounds like an awful lot of hardware and systems engineering involved to replace good old fashioned energy-dense cheap portable petrol/diseasel. The economics must require something to make it commercial even for special situations. An outright ban on carbon fuels a log way off yet. Is this just for remote off grid fixed installations or what about a mobile rescue service like when an EV runs out of electrons on the side of the A9. AFC has been up to 50p a while back. On what speculation, what went wrong a failed contract or technical problems, what needs to happen to get back there and make it stick this time … commercial success or acquisition?

Ripley94 19 Nov 2019

todays movements AFC… XXXX Hospital apportionment this morning so just seen this @ 11.43 am … Aim i never seem to learn … i think i did mention that was likely to happen . I see the price went up to 28p … i would not of thought that and would of sold more. Happy enough with what i did last few days. And this board seems to have decent chaps on it . from Regulatory News | 19th November 2019 070 RNS Number : 8182T AFC Energy Plc 19 November 2019 19 November 2019 AFC Energy plc (“AFC Energy” or “the Company”) Subscription for 2,600,000 Ordinary Shares to raise £520,000 AFC Energy (AIM: AFC), a leading provider of hydrogen power generation technologies, is pleased to announce that it has raised £520,000 before expenses by way of a subscription for 2,600,000 ordinary shares of 0.1 pence each (“Ordinary Shares”) at 20 pence per Ordinary Share (the “Issue Price”) (“the Subscription Shares”) (the “Subscription”). The net proceeds of the Subscription, the majority of which are raised from a single overseas institutional investor, are intended to enable the Company’s ability to fulfil orders following the Electric Vehicle demonstration programme commencing in December 2019. The Issue Price represents a discount of 21.875 per cent. to the closing price of 25.6 pence on 18 November 2019. The Subscription is not being underwritten and is conditional on admission of the Subscription Shares to trading on AIM. The Subscription is being conducted pursuant to the existing authorities granted to the Directors of the Company at its annual general meeting on 30 April 2019. The Subscription Shares represent approximately 0.58 per cent. of the Company’s issued share capital as enlarged by the Subscription Shares. Application has been made to the London Stock Exchange for the Subscription Shares to be admitted to trading on AIM (“Admission”) and it is expected that such Admission will occur at 8.00 a.m. on 22 November 2019. The Subscription Shares will be issued credited as fully paid and will rank in full for all dividends and other distributions declared, made or paid after the admission of the Subscription Shares, respectively and will otherwise be identical to and rank on Admission pari passu in all respects with the existing Ordinary Shares. The Subscription Shares are not being made available to the public and are not being offered or sold into any jurisdiction where it would be unlawful to do so. Following Admission, the Company will have 450,587,790 Ordinary Shares in issue, none of which will be held in treasury. Accordingly, the total number of voting rights in the Company will be 450,587,790 and shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure Guidance and Transparency Rules. Adam Bond, AFC Energy’s Chief Executive Officer, said: “The launch of AFC Energy’s first hydrogen fuelled, zero emission EV charger unit next month means we must now prepare ourselves to respond to orders in a timely manner. The funding announced today supports these activities across both the sales function and supply chain with a view to accelerating our readiness for our deployment in 2020”. For further information, please contact: AFC Energy plc Adam Bond (Chief Executive Officer) +44 (0) 1483 276 726 WH Ireland - Nominated Adviser and Joint Broker Mike Coe +44 (0) 117 945 3470 M C Peat & Co LLP - Joint Broker Charlie Peat +44 (0) 20 7104 2334 Tuva Partners- Public Relations James Kennedy +44 (0) 7809 495 759 About AFC Energy AFC Energy plc is commercialising a scalable alkaline fuel cell system, to provide clean electricity for on and off grid applications. The technology, pioneered over the past twelve years in the UK, is now being deployed in electric vehicle chargers, off-grid decentralised power systems and industrial gas plants as part of a portfolio approach to the decarbonisation of local electricity needs. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com. END IOEEAFFPFSFNFAF Editor’s picks

Eadwig 19 Nov 2019

todays movements theprior: They appear to like it. Sp is currently +3%. (had hoped to top up at 20 today ) You might get a chance yet, down to @23.5p right now. Difficult to know which way it’ll go. I was hoping to top up on a fall after it hit double figures , thinking I might get @6p or @7p… seems so long ago now, but just a couple of weeks.

theprior 19 Nov 2019

todays movements They appear to like it. Sp is currently +3%. (had hoped to top up at 20 today ) TP

Eadwig 19 Nov 2019

todays movements theprior: Placing announced today at 20p. Let’s see how the sp holds up now? Read on though … done to fund sales of E.V. product … is this just a strange extension of the placings earlier in the year to fund this roll out and sales team, because it isn’t anywhere near as much … or have they got more interest than expected? I thought I sniffed that there could be a contract announced on 6th Dec, the demo day. I’m wondering if i have that right now. Considering the last raise was @3p a few months ago and this is at @20p, remarkable progress. Let’s see what the market thinks.