I invested in CFCL quite a while ago - when they were just a technology company - and have been quite impressed at their success in moving towards an actual operating business. The focus on the "micro" residential market, the model of dealing with utilities and boiler manufacturers rather than end users, and the successful capital raising and dual listing -- all of these seemed quite focused, and the deals with five different partners seemed confirmation that the strategy was right.
And meanwhile the technology kept on improving. CFCL has done everything right, as far as I can see, except for one big mistake - taking the advice of an external financial advisor and investing their capital in collaterised debt obligations. It's a pity that looks likely to kill the company.
It looks like they need to raise something like 10 million euros or 20 million Australian dollars. They might manage to do that, but not I suspect without giving away more than half the company - at this point they'd be looking at issuing 350 million shares at 5c. If they did that through an underwritten 1:1 rights issue then I think I'd take it up.
But it's also possible they won't manage to raise any funding at all, so I'm not tempted to buy even at 6.5c - especially not while a major shareholder is unloading 30 million shares.
CFU Price at posting:
5.8¢ Sentiment: Hold Disclosure: Held
