Carbonxt Group Ltd (ASX: CG1) (“Carbonxt” or “the Company”) has successfully closed its Share Purchase Plan (SPP). The Company received a total of A$739,000 from shareholders. The offer allowed shareholders to subscribe for up to A$30,000 worth of shares at A$0.06 per share.
The SPP was underwritten to A$1,000,000 by two key shareholders, Phelbe Pty Ltd and Chaleyer Holdings Pty Ltd. These shareholders have now placed the shortfall of A$261,000.
Figure 1: Carbonxt Group Limited
Strong Support from Leadership and Major Shareholders
Both the Chairman and the Managing Director have fully participated in the SPP, demonstrating confidence in Carbonxt’s future. Each has taken up their full allocation of A$30,000.
Carbonxt Managing Director Warren Murphy expressed his satisfaction with the outcome. He stated, “We are pleased with the support received from our shareholders during this capital raise.”
Funds to Boost Kentucky Facility Expansion
The Company will use the proceeds to fund its activated carbon plant in eastern Kentucky, USA. The facility plays a crucial role in Carbonxt’s expansion strategy and long-term revenue growth.
Murphy reaffirmed this focus, saying, “The funds will be applied directly to the Kentucky facility, which is central to our expansion strategy and long-term revenue growth.”
Carbonxt currently owns a 40% interest in the plant. The Company has the right to acquire an additional 10% in three instalments, totaling USD 3.25 million (approximately A$5.3 million).
First Instalment to be Funded by SPP Proceeds
The first instalment of USD 1 million (approximately A$1.6 million) will come from the SPP funds. This marks an important step in Carbonxt’s investment strategy.
Murphy highlighted the backing from key stakeholders. He stated, “The strong backing from our major shareholders and the active participation of the board underscores our shared confidence in Carbonxt’s future.”
Share Issuance and Trading Details
Carbonxt will issue 16,666,667 new shares on 9 April 2025. These shares are expected to commence trading on the same day.
The Company’s leadership remains focused on delivering long-term value to shareholders. The capital raise ensures that Carbonxt can continue its expansion and strengthen its position in the activated carbon market.
About the Company
Carbonxt Group Limited (ASX: CG1) is a cleantech company specialising in the development and sale of advanced Activated Carbon products. These products are designed to capture harmful contaminants released during industrial processes. The Company focuses on reducing pollution from industries that emit significant levels of pollutants.
Carbonxt manufactures both Powdered Activated Carbon and Activated Carbon pellets. These high-performance materials are used in various applications, including industrial air purification, wastewater treatment, and filtration in liquid and gas phase markets. Through its innovative solutions, Carbonxt supports industries in meeting environmental regulations while promoting cleaner and more sustainable operations.
Investor’s Outlook
Carbonxt Group Ltd (ASX: CG1) continues to position itself for long-term growth through strategic investments and shareholder support. The successful Share Purchase Plan (SPP) reflects strong confidence in the Company’s vision, particularly in its expansion of the Kentucky activated carbon facility.
Growth Potential and Market Position
With a current market capitalisation of A$20.21 million and a share price of A$0.051, Carbonxt is trading near the lower end of its 52-week range (A$0.046 – A$0.091). This suggests potential upside if the Company successfully executes its expansion plans and enhances revenue streams.
The funds raised through the SPP will contribute directly to securing a greater stake in the Kentucky facility. This investment strengthens Carbonxt’s position in the activated carbon market, which plays a vital role in industrial air purification and wastewater treatment.
Support from Major Shareholders and Leadership
The participation of the Chairman and Managing Director in the SPP underscores management’s confidence in the Company’s future. Additionally, the underwriting of the SPP shortfall by key shareholders, Phelbe Pty Ltd and Chaleyer Holdings Pty Ltd, reinforces long-term shareholder commitment.
