There is also a non-renounceable, one-for-six rights issue at 18.25 cents a share plus an offer to non-Australian shareholders at 10.5p a share. The rights issue could raise up to £12.3 million and the overseas offer up to £2.1 million.
This additional cash will be used to scale up CFC’s manufacturing operation in order to take advantage of increased demand for the company’s products. By the middle of August, CFC had six integrated mCHP units and twelve BlueGen units in operation, as well as orders for many more BlueGen units.
The amount being raised from the placing and subscription is similar to the cash outflow in the company’s most recent financial year. The cash balance at the end of June 2010 was £6.6 million (A$11.5 million), including £1.5 million (A$2.6 million) that is pledged to support guarantees.
The manufacturing plant in Heinsberg, Germany for the volume assembly of fuel stacks has been completed. The company is making fuel stacks at the plant using a low volume furnace. CFC is working with the supplier of its larger furnaces so that higher rates of production can commence at the required quality standards.
Revenues were one-fifth higher at A$2 million in the year to June 2010. The net loss was more than halved to A$19.7 million.
CFC’s shares lost 12.1% of their value last month, ending August at 10.55p each.
Market: AIM
Symbol: CFU
Price: 10.75p
Market Cap: £121m
12 month high/low: 17.1p/8.3p
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