It does not say that they have sold the plant only that they have secured a project for the plant for which they will receive 450,000 British Pounds to cover the costs. The word they use is "utilise" the plant.
There is an option for the other company to purchase later at an "undisclosed price", so this could be millions for all we know.
Also They will be paying a ongoing fee, I would imagine, for the intellectual property to produce the powder.
Also it could well be that in the longer term this other company may well provide CFU with powder and become one of CFU's suppliers.
Sounds like a great idea to me to free up much need capital, as remember many shareholders did not contribute to the raising, and earn some income until it all comes together.
The question of confidentiality is a common request in such deals as neither side wants their competitors knowing what they are doing before it is done.
Seems like really good news to me.
M8, it could be worse than selling the family silver, they could have sold the family jewels.
Regards
Lockitt
CFU Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
