Carbonxt Group Limited (ASX: CG1) (“Carbonxt” or “Company”) has announced a non-renounceable pro-rata entitlement offer to raise approximately $0.7m through a Loyalty Options issue.
Key Details of the Entitlement Offer
The Entitlement Offer grants one (1) Loyalty Option for every six (6) shares held. It will be made to shareholders listed on the Company’s register as holding shares at 7:00 pm (Sydney time) on 27 August 2025. Only shareholders with registered addresses in Australia or New Zealand are eligible for the Entitlement Offer.
The issue price is set at $0.01 per Loyalty Option. Each option can be exercised at $0.07 per share three (3) years from the issue date. The Company’s Directors retain the right to place shortfall within three (3) months of the closing date, i.e., 10th September 2025.
The Offer is fully underwritten by Chaleyer Holdings Pty Limited. It is also sub-underwritten by Phelbe Pty Ltd and Carbonxt’s Directors: Matthew Driscoll, Warren Murphy, David Mazyck and Nicholas Andrews.
Purpose of the Offer
The Company has outlined three purposes for the Loyalty Options offer:
- Reward Shareholders: The Offer rewards shareholders who continue to support the Company.
- Potential Capital Source: If exercised, the Loyalty Options provide the Company with a potential source of additional capital.
- Support Growth Plans: The Offer recognises the material uplift in operations expected from the newly commissioned Activated Carbon manufacturing facility in Kentucky, USA.
Use of Funds
The Company intends to apply the $697,772.00 raised as follows:
- Expenses of the Offer: approximately $71,003.32
- Working Capital: approximately $626,768.68
The Company also intends to allocate funds raised from future option exercises to retire debt, cover offer costs, and generate modest working capital. The key financial advantage is that if shareholders exercise Loyalty Options, the Company can raise $4.9m in new funds.
Key Dates for Investors
Investors should note the following important dates (according to Sydney Time):
- Ex-date: 7:00 pm, 26 August 2025
- Record Date for Determining Entitlements: 7:00 pm, 27 August 2025
- Prospectus and Application Form Dispatch: 1 September 2025
- Entitlement Offer Opening Date: 1 September 2025
- Last Date to Extend Closing: 12:00 pm, 5 September 2025
- Entitlement Offering Closing Date: 5:00 pm, 10 September 2025
- Entitlement Offer Result Announcement: 15 September 2025
- Issue of Loyalty Options: 17 September 2025
- Loyalty Options Quotation on ASX: 18 September 2025
- Issue of Shortfall Options (if any): 24 September 2025
The Company reserves the right to amend these dates, subject to the Corporations Act 2001 (Cth), ASX Listing Rules, and other applicable laws.
Strategic Significance of the Offer
The Loyalty Options offer arrives at a critical point in The Company’s growth journey. The newly commissioned facility in Kentucky, USA, is anticipated to deliver material uplift in operations. With fresh capital support, Carbonxt is better positioned to capture expanding industrial markets.
Figure 1: An Image of the Activated Carbon Manufacturing Plant, Kentucky, USA
The structure of the offer also incentivises shareholders to remain engaged with the Company. A low upfront cost per option, coupled with a three-year exercise window, provides flexibility for investors. For Carbonxt, the potential $4.9m capital injection could accelerate expansion and debt reduction.
Broader Market Context
The global activated carbon market is estimated at USD 6.2 billion in 2025 and is projected to reach USD 15.5 billion by 2034, reflecting a CAGR of 10.7%. In the United States, the market is valued at USD 1.9 billion in 2025 and is forecast to grow to USD 4.6 billion by 2034, advancing at a 10.0% CAGR.
Figure 2: Global Activated Carbon Market By Application
Activated carbon is extensively used in water purification, effectively removing chlorine, volatile organic compounds (VOCs), and other impurities. It also serves critical applications in medical treatments, particularly for toxin and poison management. The material’s versatility, efficiency, and environmentally friendly properties continue to drive its broad adoption across industries. Global demand for activated carbon is increasing due to stricter environmental regulations. Industries are under pressure to adopt effective solutions for air purification and wastewater treatment. The Company’s expanded production capacity in the US positions it to meet this demand.
The offer reflects a strategic alignment of shareholder engagement and operational expansion. It enables the Company to strengthen its balance sheet while delivering value to investors.
Investor’s Outlook
Carbonxt (ASX: CG1) last traded at $0.066, giving the company a market capitalisation of $25.53 million. The Company’s stock has traded between $0.043 and $0.082 over the past 52 weeks, reflecting steady market interest.
As a cleantech company, Carbonxt develops and markets specialised Activated Carbon products for capturing contaminants in industrial processes that emit harmful pollutants. The Company manufactures Powdered Activated Carbon and Activated Carbon Pellets for air purification, wastewater treatment, and other liquid and gas phase applications.
Its focus on environmental compliance positions the Company strongly within a growing global sustainability market. Investors should follow key milestones closely. The uptake of the Entitlement Offer, operational performance of the new facility, and broader demand trends will shape near-term outcomes. For long-term investors, the offer reflects an alignment between shareholder rewards and the company’s operational expansion.
