CFoam soars 75pc after sealing a deal to help build a US Navy warship
Industrial strength foam maker CFoam jumped 75 per cent this morning after the US navy agreed to use its its carbon foam panels in a new warship.
CFoam (ASX:CFO) hit an intraday high of 28c in early Thursday trade compared to yesterday’s close of 16c.
The shares cooled to 22c at midday — but it was still the second biggest small cap mover of the day.
CFoam’s carbon foam will be used in an exhaust system which will be fitted to an Arleigh Burke Class Destroyer at the start of 2019.
The foam technology is an improvement on previous options for exhaust system construction because it doesn’t corrode as easily as metallic options, which tend to be hit hard by high temperatures and exposure to sea water.
CFoam told investors there could be scope for its technology to be used in other ship fleets. It highlighted that there were 65 ships in commission in the Arleigh-Burke class carrier alone.
The company reported $US476,000 in customer receipts in the three months to March, while burning $US642,000.
CFoam had $US2.1 million in the bank at the end of the third quarter.