Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

CFO by the numbers
More From The Market Herald
The Market Herald Video

" BBX Minerals (ASX:BBX) encounters further mineralisation at Tabocal, Brazil

BBX Minerals (ASX:BBX) has received assays from hole TED-002 at the Tabocal prospect within the Três…
The Market Herald Video

" Petratherm (ASX:PTR) wins bid for Muckanippie REE project, SA

Petratherm (ASX:PTR) has been successful through a competitive bid process to be the preferred application for…
The Market Herald Video

" Arcadia Minerals (ASX:AM7) advances testwork at Bitterwasser, Namibia

Arcadia Minerals (ASX:AM7) has announced "positive" cyclone and leach testwork results from the Bitterwasser project in…
The Market Herald Video

" R3D Resources (ASX:R3D) to recommence Zeehan zinc slag/matte exports

R3D Resources (ASX:R3D) has been granted permits to recommence exports from its Zeehan zinc slag/matte project…