Ann: CFU signs new contract with EON for UK marke, page-54

re: Ann: CFU signs new contract with EON for ... where will the funds come from? who will back them?

That's the billion dollar question.

In more normal circumstances, CFCL would probably be in a position to get debt funding. They have some concrete assets - the powder plant - and pretty much committed orders from solid counterparties (European banks may be sickly, but power utilities are just fine). However banks don't seem to want to lend to even established businesses at the moment, let alone speculative ones. (Though Australian banks are still lending money to home-buyers at what seem to me insane LVRs.)

Government grants seem wishful thinking, given the other demands on governments at the moment.

Agreements with utilities could include some up front payments, or some milestone payments that could be triggered on technical achievements in the next few months. Given their precarious position, CFCL might be prepared to trade substantial long-term concessions (exclusivity, other rights) for cash now, and something like that may be in the E.ON agreement.

An equity raising is getting increasingly painful as the share price drops. The dilution required to raise $20 million at current prices is enormous.

Possibly something could be done as a combination of debt funding and an equity raising, through the issue of some kind of convertible preference shares. The idea would be for the funder to get debt security along with some share in the potential upside.