AFC Energy’s chairman today tackled Brexit uncertainty and responded to shareholders’ stock worry.
Adam Bond said: “As many of you will have seen, the last quarter has been witness to multiple external factors that have had material effects on global markets, political certainty and international energy policy. Despite these events, which have led to uncertainty across the capital markets in particular, I’m pleased to announce that AFC Energy has continued to focus on progressing its targeted milestones for 2016.
“I’m acutely aware several shareholders have expressed concerns over the fall in our share price in recent months. Whilst it is not always appropriate for me to comment specifically on share price movements or targets, it is true to say that the Company has had a material overhang in its stock at least since March 2016 where several million shares have been sold on market by one seller which many saw culminate in a block trade a week or so ago and therefore closing out their position.”
The firm is currently claiming back European Union (EU) funding, including a EUR2.5million payout. The company plans receive further EU reimbursements for its Power-up Project.
The company leader added: “Last week, we saw the outcomes of the BREXIT referendum where the UK voted to leave the European Union.
“Despite this decision, AFC Energy will continue to deliver on its commitments under the two outstanding EU programmes for which the Company is the project Co-ordinator, namely POWER-UP and ALKAMMONIA, and we expect to receive all outstanding grant funding arising from these projects.
“Going forward, there is uncertainty over the applicability of EU funding for new projects which may or may not arise and we are in dialogue with the EU FCH JU in regards to future EU-funded opportunities. Of course this will not preclude the Company from pursuing any commercial project opportunities in the EU.
“In addition, as many of the short-term opportunities for the Company under investigation relate to projects in non-EU Member States, this would help to mitigate any impact from BREXIT on the Company’s business plan or commercialisation strategy going forward.
“As is the case for all other businesses, we will of course need to wait and see the outcome of progress made during the transition period, before the terms of the exit are agreed and implemented. We will carefully monitor these developments and report back to shareholders in due course.”