capital raising: we saw it coming and want it, page-4

Quoting Indijo:
"However I am not sure where the 30million comes from and how the "additional proceeds will provide the Company with further working capital required to leverage economies of scale by placing volume orders with suppliers and to implement further value engineering to drive down manufacturing cost." I am concerned because I cant see how this arrangement means CFU feel they will be selling fuel cells anytime soon?!?"

Current order book is at 500 which Andrew Neilson has stated is likley to be closer to 1000 by year end, possibly from Zestiq or possibly elsewhere but he has said 1000 nonetheless. ( http://www.theaustralian.com.au/business/opinion/lender-delivers-a-tasty-entree-for-both-optimists-and-gloomsters/story-e6frg9lo-1226166194167)

Also announced on Wednesday a deal with Jabil for Manufacturing Services with the stated aim of reducing unit costs.

So these both tie in directly with the statements:
"The funds raised will enable the Company to increase volume production of its products and
match the demand from the volume orders it has started to receive. This funding will give the
Company additional working capital required to leverage economies of scale by placing volume
orders with suppliers and to implement further value engineering to drive down manufacturing
costs."

So it sounds to me like they are definitely preparing to sell fuel cells soon and want to be in position to be able to meet those orders at a lower unit cost than they can currently achieve.

A couple of further announcements on orders between now and when they want us to stump up the cash certainly wouldn't hurt though. But the fact a director was happy to kick in at 13 cents suggests to me that they think they've got some more good news up their sleeves.