Carbonxt Group Limited (ASX: CG1) (“Carbonxt” or “the Company”) has reinforced its growth strategy after successfully completing a $600,000 placement, providing fresh capital to support operational momentum and expand its strategic investment in New Carbon Processing. The funding highlights strong backing from a major shareholder and sophisticated investors, positioning the Company to progress commissioning activities at its US-based facility.
Figure 1: Carbonxt Group Limited
Strategic Capital Raise Supports Growth Initiatives
Carbonxt Group Limited (Carbonxt or the Company) confirmed it has completed a placement of 6,666,667 fully paid ordinary shares at an issue price of $0.09 per share, raising gross proceeds of $600,000. The placement attracted participation from major shareholder Phelbe Pty Ltd and several high-net-worth investors, demonstrating continued confidence in the Company’s long-term strategy.
Key placement details include:
- 6,666,667 fully paid ordinary shares issued
- Issue price of $0.09 per share
- Total funds raised of $600,000
- Shares issued under ASX Listing Rule 7.1 capacity
The placement price represented:
- A 10.0% discount to the last closing price of $0.10
- A 7.9% discount to the 5-day VWAP of $0.098
- A 6.8% discount to the 10-day VWAP of $0.097 (as at 2 January 2026)
All Placement Shares will rank equally with existing fully paid ordinary shares on issue.
Figure 2: Details of the share placement by Carbonxt Group Limited
Clearly Defined Use of Funds
Carbonxt has outlined a disciplined approach to deploying the newly raised capital, aligning expenditure with near-term operational needs and strategic growth objectives.
Funds from the placement will be used for:
- Working capital to support ongoing operations
- A further US$250,000 investment in New Carbon Processing, LLC
Following this investment, Carbonxt will increase its ownership interest in New Carbon Processing to 46.7%, strengthening its exposure to advanced activated carbon manufacturing in the United States.
Figure 3: Infographic showing allocation of funds.
New Carbon Processing Advances Towards Commissioning
New Carbon Processing remains a core strategic asset for the Company, providing Carbonxt with access to specialised carbon production capabilities in North America. The Kentucky-based facility is progressing towards commissioning campaigns, marking a key operational milestone.
Following initial start-up activities, the Company identified certain remediation and additional works required to support commissioning and improve operational resilience.
Current focus areas at the facility include:
- Completion of remediation works identified during start-up
- Additional upgrades to support commissioning campaigns
- Enhancing redundancy across critical operations
Carbonxt continues to advance these works to ensure the facility operates efficiently, safely, and reliably ahead of sustained production runs.
Figure 4: Image of Kentucky-based plant [LinkedIn]
Positioned Within a Growing Cleantech Market
Carbonxt operates as a cleantech Company specialising in activated carbon products designed to capture harmful contaminants from industrial processes. Its product range supports customers operating in highly regulated environments.
The Company’s core product applications include:
- Industrial air purification
- Wastewater treatment
- Liquid and gas phase environmental solutions
With environmental regulations tightening globally, demand for high-performance activated carbon continues to grow. Carbonxt’s expanding production footprint and strategic investments aim to support this demand while enhancing margins and supply chain reliability.
Investor Outlook and Share Price Performance
Carbonxt Group Limited (ASX: CG1) has delivered a solid share price performance over the past year, reflecting increasing investor confidence in the Company’s execution and strategic positioning.
Share price (ASX):
- Last traded price: $0.098
Performance highlights:
- 1 Week: +2.08%
- 1 Month: +2.08%
- 1 Year: +36.11%
- vs Sector (1 year): +3.32%
- vs ASX 200 (1 year): +30.21%
The successful capital raise, increased ownership in New Carbon Processing, and progress toward commissioning provide clear near-term catalysts. While commissioning and operational execution remain key risks, the Company’s improving asset base, disciplined capital management, and exposure to long-term environmental themes support a constructive investor outlook.
As Carbonxt continues to advance its US operations and respond to rising demand for environmental solutions, investors will closely monitor commissioning milestones, revenue growth, and margin expansion as indicators of long-term value creation.
