CFOAM raises $4.5m to triple production of super-strength foam
Industrial-strength foam producer CFOAM plans to triple production after raising $4.5 million.
Production of CFOAM’s ultra-high-performance coal and carbon-based materials is set to triple and ultimately triple again under expansion plans made possible by their latest $4.5 million raise.
CFOAM’s non-combustible foam is similar in appearance to a basic bathroom pumice stone — but much stronger and fire-resistant. It’s mechanical and thermal properties make it perfect for critical applications such as rocket nozzles, fire-proof doors and oil refinery walls.
CFOAM (ASX:CFO) yesterday announced they had raised $4.5 million at 36c a share, to mainly new institutional and sophisticated investors.
CFOAM shares closed up 8 per cent at 40c on Monday, valuing the company at $37 million.
The funds will be used to more than triple production capacity to 25,000 cubic feet from 9000 now.
CFOAM is also working towards a second-phase rollout which could see production capacity increase to 80,000 cubic feet — and potential revenue to upwards of $US28 million, the company told investors.
Described as a “next generation carbon material”, CFOAM is produced from powdered metallurgical coal which is processed to result in almost pure carbon — in a hard, open-cell material form.
CFOAM’s main area of focus has been composite tooling – the creation of moulds for specific parts in aerospace and defence.
US-based Touchstone Research Laboratories (TRL) has been working on the material since 1998.
TRL founder Brian Joseph agreed to sell two million CFOAM shares to strengthen the company’s register, but will remain the third biggest shareholder.
CFOAM reported a loss of $1.7 million last year but says it is preparing for “explosive growth”.
“We are very confident that the just-completed September quarter will represent the nadir in terms of product quality, productivity and sales volume,” director Alain Bouruet-Aubertot said.
“As our broad operational improvements continue, we will look to simultaneously ramp existing production while pursuing continuous improvement initiatives, accelerate the execution of our Phase 1 expansion plans and work towards finalising full Phase 2 feasibility and implementation.”