CFOAM surges on debut

26/10/2016 - 15:09

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A carbon foam-focused company chaired by Perth-based chartered accountant Gary Steinepreis has made huge gains on its first day of trading on the ASX, after completing a $9 million initial public offering.

CFOAM surges on debut

A carbon foam-focused company chaired by Perth-based chartered accountant Gary Steinepreis has made huge gains on its first day of trading on the ASX, after completing a $9 million initial public offering.

CFOAM raised the funds through the placement of 45 million shares at 20 cents each.

At the close of trade today, its shares were worth 70 cents each.

The company, which has a registered office in Perth, is chaired by Mr Steinepreis, with Structural Monitoring Systems managing director Toby Chandler also holding a non-executive director position on the board.

CFOAM plans to use the proceeds of its IPO to complete a purchase agreement with US-based Touchstone Research to acquire the CFOAM carbon product, and to commercialise it.

The CFOAM product is an inorganic carbon material that is manufactured from coal, pitch or lignin feed stock.

Manufactured in this process, the product has a rigid foam structure that can be use in a variety of markets, including composite tooling for the aerospace sector, energy absorbing applications and defence applications.

“There has been growing demand for ultra-high end performance engineering materials in the military, industrial, aerospace and commercial product markets,” Mr Steinepreis said.

“In response to this, Touchstone Research has directly and through funding grants, invested over $US60 million to date in developing CFOAM products and end use applications.

“As a result of the development of the CFOAM products, the company has entered into an agreement to acquire all production plant and equipment, intellectual property contracts and infrastructure related to the production of CFOAM.

“Following this acquisition, the company intends to grow and become a recognised player in the production of high end performance engineering materials.”

Jett Capital acted as manager to the IPO, with Steinepreis Paganin as solicitor. 

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