i posted the warnings months ago!

Yet again I am spot on. I said a few months ago that the next fund raising would likely be as low as 2p and it is at 2.14p!

2p is roughly where I expected the next fundraising to be if they made no decent progress since the last fund raising, which they haven't. In fact they have installed just 20 Bluegens in 4 months which is dire, they only sold 9 units in the quarter to 31 March which is also dire, especially when you know they need to sell in the 1000's to make a profit.

The loss for the quarter to 31 March was £4.4m, but look deeper!

On 20 September 2012 they said "Together with existing cash reserves this will give the company cash of approx AUD 17 million (GBP 11 million)."

On 31 March 2013 they had cash of $3.688m which is £2,458,535.

£11m - £2,458,535 = £8,541,465 burnt in 6 months. So CFU still has a burn rate of £17,082,930 per year, which is quite staggering considering they are supposed to have cut costs!!

On top of all that the furnaces are still not working 100% and they won't know if the furnaces will produce stacks at full speed, to the standards required, until the end of May.

Also worth noting they are only able so far to raise enough cash to last 3 months at the current burn rate. If they get the tax refund on top of cash in hand they should be safe for 6 months, but they will need to look at raising cash again in 3-4 months.

They talk of the potential to manufacture 1500 units per year, but they only sold 61 in 2011, 169 in 2012 and in the 9 months to 31 Mar they had only sold 99 units, a long way from 1500 in one year. The price of the things is still far too high to break out of that 'cottage industry' performance. They are seriously looking at several ways to cut the costs of the things(read them in the Q3 update), which shows that they know they can't sell them in significant quantities at the current price.

Best hope is that they get some sales momentum and that the next fund raising is again at 2p, but it looks so risky now that a sell off could mean 1p or less in 3-4 months time when the next fund raising is needed.