- CFOAM has entered a strategic transaction with the NYSE-Listed CONSOL Energy
- The new partnership means CONSOL will invest over US$2.5 million in equity
- On top of the new investment, CFOAM is moving ahead with a capital raising A$2.25 million placement
- CFOAM is focused on meeting market demand for high-grade carbon material products in the aerospace, military and commercial industries
CFOAM has entered a strategic transaction with NYSE-listed, CONSOL Energy.
The new partnership, expected to be finalised by the end of this month, means CONSOL is expected to invest over US$2.5 million in equity into the Australian-based carbon material producer.
Part of the transaction involves CONSOL investing US$1.4 million, expected to bring CFOAM’s market value up to A$21 million. In return, CONSOL will walk away with a 10 per cent stake in CFOAM.
CONSOL will round out its capital contribution with a term loan of US$1.1 million to support the company’s operational costs.
On top of the new investment, CFOAM is moving ahead with a capital raising A$2.25 million placement to be put into effect following shareholder approval next month.
CFOAM has already received commitments from existing major shareholders and intends to issue over 19 million shares at a price of 10.5 cents.
Funds from the placement will be put towards shaping the company’s platform expansion plan, as well as exploring opportunities to bring on more U.S. strategic partners.
Currently, CFOAM is focused on meeting market demand for high-grade carbon material products in the aerospace, military and commercial industries.
Despite news of the partnership and placement, CFOAM stocks took a hit today and traded down at A$0.12. It marks a 20 per cent loss since the announcement today.
Meanwhile, CONSOL Energy stock traded higher today, attracting a rise of 5.95 per cent on the NYSE. Shares are currently going for US$18.52.