The convertible notes have been issued on an excluded offer basis to institutional, professional and sophisticated investors, including some of CFCL’s existing shareholders and significant institutions and ethical funds.
They have a term of three years and are redeemable by CFCL earlier on certain terms. Noteholders can also convert the notes into ordinary fully paid shares at a conversion price of $0.50 per share, according to CFCL chief executive Brendan Dow.
“We are pleased to complete this raising as part of our overall strategy to ramp up the commercialisation of our product,” Dow said.
“The level of support for the raising is also particularly encouraging, with investors supporting our commercialisation strategy. This support saw the offer close on time and oversubscribed.
“Contracts now being secured demonstrate the commercial feasibility and demand for our technology. We believe we are well positioned to complete our listing on the AIM market and raise substantial additional capital in Europe.”
As part of its commercialisation strategy, CFCL intends to pursue a further capital raising in Europe in the second half of 2005, along with its planned admission to the Alternative Investment Market of the London Stock Exchange (AIM).
CFCL has canvassed the interest of brokers and equity providers in Europe to support this further raising by CFCL. Significant interest has been expressed for the proposed European capital raising, and the company expects it to be more than A$20m (approx €12m). The capital raised would be used to implement the company’s international business strategy.
“To date CFCL has announced four contracts for field trials of its prototype CHP units, including with Powerco in New Zealand, Szencorp in Australia and EWE, Germany’s fifth largest power utility,” Dow said.
“CFCL is continuing to build a pipeline of opportunities with utilities and application partners as part of an aggressive roll out strategy. In parallel, the company is exploring opportunities for volume manufacture of its fuel cells, including with potential partners.
“The company has also done significant planning and work in conjunction with external consultants, CERAM and Sinclair Knight Mertz, to design a commercial scale fuel cell manufacturing facility in Europe.”
