Director share options

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

16 December 2020

AFC Energy PLC

("AFC Energy" or the "Company")

Director Share Options

AFC Energy (AIM: AFC) announces that, in line with its existing share option agreement with CEO Adam Bond (the "Original Award"), five tranches of options have vested and conditions on the remaining four tranches have been adjusted to reflect the significant increase in share capital and change to business strategy.

The Original Award (dated July 2015) was in nine tranches. Tranches 1 to 3 each representing 1,000,000 options were exercisable subject to various share price targets. Under the terms of the Original Award these target prices have been adjusted to 42.5p, 64p and 85p (respectively) to take into account the change in the Company's share capital since July 2015.  In addition, the Remuneration Committee has added a retention clause to these options such that a specified number of shares should not be sold between the date of exercise and the first anniversary of these revisions. This holding requirement is reduced by the number of shares necessary to meet the tax liability arising from the exercise of the options ("Retention Requirement").

Tranches 4 to 9 of the Original Award were exercisable dependent on the achievement of certain operational performance measures. The Remuneration Committee has determined that, save in respect of the Tranche 7, these conditions have either been achieved, or a comparable measure achieved.

In addition, under the terms of the Original Award, the Remuneration Committee has adjusted the strike price of the Original Award from 51p to 22p, in line with the increase in Company's share capital since July 2015.

The 6,000,000 options currently held by Mr Bond represent approximately 0.88 per cent. of the Company's existing issued share capital.

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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 deployable 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.