Ceramic Fuel Cells pockets USD 11.2m in cash call

Dec 6, 2011 - Australian Ceramic Fuel Cells Ltd (ASX:CFU, LON:CFU) said today it had raised AUD 11 million (USD 11.2m/EUR 8.4m) in a rights issue in Australia, New Zealand and the UK.

The company said it would use the funds to boost the volume of its manufacturing output as demand is growing. Ceramic Fuel will add to the proceeds the GBP 3.8 million (USD 6m/EUR 4.4m) it pocketed in November in a share offering to institutional investors and a subscription by a UK cornerstone investor.

As part of the rights issue, the company offered its shareholders in Australia and New Zealand to purchase one new share for every four shares they hold at AUD 0.108 apiece. Some 38% of the rights issue shares were subscribed, bringing proceeds of AUD 8.3 million. Ceramic Fuel will now issue nearly 77 million ordinary shares.

At the same time, the company cleared its shareholders in the UK to purchase any number of new stock at a price of GBP 0.07, seeking to raise up to GBP 2.15 million. It got subscriptions for 84% of the offered amount or 25.7 million shares for proceeds of GBP 1.8 million.

Once the shares start trading, which is expected to happen on December 12 for the rights issue shares and December 9 for the stock offered in the UK, the company will have 1.37 billion shares in issue.

(AUD 1.0 = USD 1.019/EUR 0.762; GBP 1.0 = USD 1.563/EUR 1.168)

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