Alkaline Fuel Cell Power Corp. (AFCP) has closed a convertible note financing with an aggregate amount of C$ 4,000,000.
“We are pleased with the support of our investors for this financing,” CEO Frank Carnevale said in a statement. “The financing will assist with our working capital and allow the company to focus on developing affordable renewable energy projects.”
The convertible notes, which will mature on November 18, 2025, allow the company to access up to C$ 4,000,000 on an aggregate basis and can be drawn on at its request. Outstanding amounts under the convertible notes will be convertible at the option of the holders into common shares of the company at a conversion price of $0.10 per share, at any time prior to the maturity date, subject to the terms of the notes. The notes bear an interest of 10% compounded monthly, which will be applied to all outstanding amounts drawn under the notes.
In consideration for entering into the financing, the company has issued an aggregate amount of 20,000,000 common share purchase warrants. Each warrant will entitle the holders to acquire one common share at a price of $0.15 for a period of 36 months.
Funds drawn under the convertible notes will be used for general corporate and administrative purposes, the company said.
AFCP is a diversified investment platform developing affordable, renewable, and reliable energy assets and cleantech. It operates through two global entities: Fuel Cell Power NV, a wholly-owned subsidiary in Belgium, and PWWR Flow Streams, an AFCP brand in Canada.