Ann: Fundraising for working capital and to maint, page-119

re: Ann: Fundraising for working capital and ...

AIM listed ITM Power only got 19.8% of their open offer taken up. They are in a similar boat to CFU except they only burn £6.6m a year instead of £16m and have no problems with manufacturing their product.

http://www.investegate.co.uk/Article.aspx?id=201207240700123304I

19.8% tells us a lot about how risk averse the market is right now. PI's want to keep their cash in their pockets 'just in case'.

If CFU get 19.8%, which it may well do, it would only raise:

Australia - AU$13.8m = £9,316,204
UK - £2m
Total £11,316,204

19.8% of that is just £2,240,608

Cash on hand at 30 June of £5.8m

Total £8,040,608

Cash burn of £1,700,000 per month (see Cashflow Report for the June Quarter)

Enough cash to last just under 4 (FOUR) months. (from 30 June!)

Even if they dropped costs by a staggering £700k to £1m per month that is still only enough cash to last another 7 months, so they would need to raise more cash somewhere between 3 and 4 months time.

By the way the SP has dropped you can tell a load of people tried topslicing to pay for their dilution, but the SP went below the offer price so it made it a bad idea to try that. I think CFU might squeeze 25% take up in this market and the next placing in 'a number of months' (nice CFU type spin there!) will be at an even lower price.