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- CFOAM (CFO) has settled its US$5 million transaction with CONSOL Energy for a strategic equity and debt investment in the company
- CONSOL invested $5 million into CFOAM and will provide strategic direction, board representation and corporate advice
- It will also play an important role in developing CFOAM’s core carbon material products which are applied to the aerospace, energy absorbing and defence markets
- Company Chairman Gary Steinepreis considers this investment to be a significant turning point in the company’s history
- CFOAM is down 14.9 per cent today with shares trading at 8 cents each
CFOAM (CFO) has advised it has settled the US$5 million (A$7.3 million) transaction with CONSOL Energy for a strategic equity and debt investment in the company.
CFOAM has an array of products which are an inorganic carbon material manufactured from coal, pitch or lignin feedstock.
They are currently used in a range of markets such as the aerospace sector, energy absorbing and defence applications.
CONSOL invested $5 million into CFOAM and, moving forward, will provide strategic direction, board representation, corporate advice and will play an important role in developing CFOAM’s core products.
“This investment represents a milestone for CFOAM – CONSOL’s proven business success in the energy sector, as a supplier of high-quality metallurgical coal, supplements CFOAM target of becoming a true player in the material science industry,” CFOAM President and CEO Flemming B. Bjoernslev said.
CONSOL Energy is a Pennsylvania-based coal producer and exporter and operates some of the most productive mining operations in the Northern Appalachian Basin.
CFOAM Chairman Gary Steinepreis considers this investment to be a significant turning point in history.
The company’s management team will leverage CONSOL’s experience with process engineering, automation, metallurgical chemistry, supply chain logistics, and accounting and finance.
Under the agreement, CONSOL has invested US$3.5 million (A$5.1 million) for a 25 per cent direct-equity interest in CFOAM.
The investor has also provided a US$1.1 million (A$1.6 million) term loan to support CFOAM’s operations.
CFOAM is down 14.9 per cent today with shares trading at 8 cents each at 1:19 pm AEDT.
