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Shares in Ceramic Fuel Cells Limited (ASX:CFU, LON:CFU) sank more than 25 per cent yesterday after warning the market one of its contracts looks likely to fall apart.
The developer of small generators advises it has not received a promised prepayment relating to an order of 1,000 of its BlueGen units from Estonian distributor Synergy International.
As the contract was secured on the basis of a cash payment before the end of 2013 Synergy International is now in breach of contract.
Ceramic Fuel Cells says as it is highly unlikely the prepayment is going to be received it will now explore options to secure ongoing support for its business activities.
The company’s flagship BlueGen product uses fuel cell technology to convert natural gas into electricity and heat for homes and other buildings.
Shares in Ceramic Fuel Cells sank 27.78 per cent yesterday to close at $0.026 on the ASX and plunged more than 34 per cent on the London Stock Exchange overnight.
Ceramic Fuel Cells booked a net loss of $19.8 million in 2013 financial year.
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