Carbonxt-Group-Ltd-Raise-AUD-7-Million-through-Share-Placements

Carbonxt Group Ltd Raises AUD 7 Million through Share Placements

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Carbonxt Group Limited (CG1) (ASX: CG1) (“Carbonxt” or the “Company”) announced recently that the Company has received commitments to raise AUD 7 million. Carbonxt will be raising the amount through the 70,000,000 fully paid share placement at AUD 0.10 per share. This amount will be raised in two parts (tranches).

Tranche 1: 

Tranche 2:

Placement Share Price

Placements in both Tranches 1 and 2 will be issued at a share price of AUD 0.10, a 4.8% discount on the last closing Carbonxt stock price. The placement plan record date was September 23, 2022. Carbonxt is aiming to raise AUD 1 million. The offer booklet for the same will be dispatched on September 30, 2022.

Commenting on the support received for the share placement, Managing Director Warren Murphy said, “We have received support from both existing investors and new ones for this placement. Our investors recognize the potential of our products and their broad market applicability as well as their appeal in industries looking to reduce carbon footprints.”

Also Read: Carbonxt Group Limited Announced FY22 Results

Where will Carbonxt Group Limited use the funds?

The funds raised through share placement will be used to fund Carbonxt’s initial 40% contribution to the activated carbon plant in eastern Kentucky, USA. The plant will be built and operated in collaboration with KCP, the joint venture partner.

Carbon Plant by Carbonxt Group project

Activated Carbon Briquettes

The planned facility aims to significantly increase production capacity and gross margins. The plant will increase the total production capacity of Carbonxt from 16,000 tonnes to 25,000 tonnes, a 57% increase. The facility can also be expanded afterward.

The facility will also facilitate Carbonxt’s entry into the granular activated carbon market, and this is expected to significantly wide Carbonxt’s scope. With the operation of this facility, Carbonxt aims to emerge as a clean-tech company with plants in Kentucky, Minnesota, and Georgia.

Carbonxt and joint venture partner KCP have already received all the required construction and operation permits for the new facility. The venture will commence engineering activities once initial fund placements are received.

Speaking on the funding, Managing Director Warren Murphy also added, “This funding will ensure Carbonxt will have the production capacity to become a leading player in the US market – especially in multiple activated carbon products. The higher manufacturing capacity will also ensure we can deliver activated carbon products to many more market sectors.”

Carbonxt industries plant

A Power Plant

Carbonxt has a diversified portfolio of activated carbon-based products including powdered activated carbon, activated carbon pellets, and many more. The Company provides green-tech solutions to coal power plants, cement plants, waste-to-energy companies, portable water companies, and many more. If you wish to learn more about Carbonxt’s portfolio, visit the official website to learn more.

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