The notice issued today is misleading and whether deliberate or not glosses over the potential size of the raising. It attempts to placate us that the raising is below 15% of the Company's total issued share capital and won't require shareholder approval. However, it fails to address the potential for a total 24% increase in the number of shares on issue once the Australian & NZ rights issue is included with the overseas tranches. Such obfuscation is unworthy.
Many of us a believers in the potential of this technology and the small distributed sector CFU has always aimed for. That doesn’t mean it’s going to fly and the time has come for some reality to warrant further investment and expenditure. What I will be looking for in the Prospectus: 1. What volume of business is necessary to prevent the need for a constant cycle of Rights Issues? 2. Alternative what volume of business will be sufficient to support a measure of debt funding? 3. When will the required levels of business be realised? 4. Will the company consider a consolidation of shares? 5. In the continued level of investment on R&D including staffing in Australia warranted when existing developments have not yet attracted other than small scale testing and demonstrator installations?
CFU Price at posting:
11.8¢ Sentiment: LT Buy Disclosure: Held
