Shares in dual listed Ceramic Fuel Cells Limited
(ASX:CFU) rose yesterday as the developer of small generators announced it has secured a strategic investor.
Ceramic Fuel Cells says it has inked a deal to raise $6 million from one of its strategic supply partners, China’s Chaozhou Three-Circle.
The subscription of 100 million new ordinary shares at an issue price of 6 cents per share represents an 11 per cent premium to the company’s last closing price before the announcement was made.
Chaozhou is a manufacturer of electronic components and advanced ceramics and one of Ceramic Fuel Cells’s key suppliers.
Ceramic Fuel Cells says it is working with Chaozhou to outsource other manufacturing processes and component supply, increase volume and reduce its product costs.
Shares in Ceramic Fuel Cells rose 9.09 per cent yesterday, closing at $0.06.
Ceramic Fuel Cells booked a net loss of $30.2 million in the 2012 financial year.
