Carbonxt Group Limited (ASX: CG1) (“Carbonxt,” or “the Company”) has announced a Share Purchase Plan (SPP) following two successful capital raises in late 2024. This initiative offers shareholders an opportunity to invest under the same terms as institutional investors. Funds from the SPP will support working capital and accelerate the development of Carbonxt’s Kentucky facility.
Today’s announcement highlights the Company’s financial strength and strategic positioning in the expanding activated carbon market. The Kentucky facility has reached mechanical completion, and Carbonxt expects to generate initial revenues in the first half of 2025.
Successful Capital Raises Strengthen Financial Position
Carbonxt raised a total of $4.02 million in 2024 through two placements.
- September 2024 Placement: Raised $3.02 million at $0.065 per share. Proceeds funded the next payment to NewCarbon Processing LLC for the Kentucky facility and supported working capital.
- December 2024 Placement: Raised $1.0 million at $0.06 per share. Funds further advanced the Kentucky facility, increasing Carbonxt’s ownership stake to 40.3%. The Company retains the right to invest further and reach 50% ownership.
Managing Director Warren Murphy emphasised the significance of these capital raises:
“We are pleased to offer this Share Purchase Plan following strong investor support in our recent placements. This initiative allows all shareholders to increase their stake in Carbonxt under the same terms as institutional investors. With our Kentucky facility advancing towards commercial output and growing demand for activated carbon, we are well-positioned to deliver long-term value.”
Share Purchase Plan Details
The SPP aims to raise up to $2.0 million at $0.06 per share. Two major shareholders have underwritten $1.0 million, ensuring a minimum level of participation.
Key SPP Information:
- Record Date: 14 February 2025
- Offer Price: $0.06 per share
- Maximum Subscription: $30,000 per shareholder
- Target Raise: Up to $2.0 million (33.3 million new shares)
- Eligibility: Shareholders in Australia and New Zealand
Carbonxt reserves the right to scale back applications if demand exceeds the target amount. Scaling decisions will consider factors such as an applicant’s existing shareholding and the timing of their application.
The SPP opens on 25 February 2025 and closes on 14 March 2025. New Shares issued under the SPP will rank equally with existing shares. The Company expects to issue and settle the new shares by 20 March 2025.
Figure 1: The timeline table for the Share Purchase Plan that aims to raise up to $2 million.
Kentucky Facility Reaches Mechanical Completion
A major highlight of today’s announcement is the mechanical completion of Carbonxt’s Kentucky facility. This facility is central to Carbonxt’s growth strategy and is expected to generate its first revenues in the first half of 2025.
The Kentucky facility strengthens Carbonxt’s position in the US activated carbon market. Regulatory changes, including stricter EPA guidelines on PFAS removal, are driving demand for activated carbon filtration solutions. Carbonxt is well-positioned to capitalise on this opportunity.
Regarding Carbonxt’s entry into the US water treatment market and the completion of the Kentucky plant, MD Warren Murphy commented:
“Entering the US water treatment market, supported by regulatory changes, presents a major growth opportunity. Additionally, our joint venture with Kentucky Carbon Processing enhances supply chain security and strengthens our ability to meet rising industrial demand.”
Strategic Growth and Market Expansion
Carbonxt’s expansion aligns with increasing demand for activated carbon across industries. The Company has secured long-term contracts and expects accelerated revenue growth in 2025.
- PFAS Regulations: Stringent EPA guidelines are driving demand for activated carbon in water treatment.
- Industrial Needs: Growing requirements for emission control solutions are opening new market opportunities.
- Cost Optimisation: Operational improvements have reduced costs by $1.5 million annually, strengthening financial stability.
With these tailwinds, Carbonxt expects continued revenue growth and strong shareholder returns.
Carbonxt is strategically positioning itself in the expanding global activated carbon market, which was valued at USD 5.21 billion in 2023. The market is projected to grow at a CAGR of 5.7%, reaching USD 8.54 billion by 2032. The demand surge is driven by increasing environmental regulations and industrial applications.
Asia Pacific led the market in 2023 with a 42.23% share, reflecting the region’s growing industrialisation and stringent emission control policies. The U.S. market is also on a strong growth trajectory, projected to reach USD 2.00 billion by 2032. This expansion is primarily due to regulatory pressure on industrial wastewater and gas emissions, compelling industries to adopt high-performance filtration solutions.
![Activated Carbon Market Growth Trends in Asia Pacific Region [Credit: Fortune Business Insights]](https://colitco.com/wp-content/uploads/2025/02/Activated-Carbon-Market-Growth-Trends-in-Asia-Pacific-Region.webp)
Figure 3: Activated Carbon Market Growth Trends in Asia Pacific Region [Credit: Fortune Business Insights]
December Quarter Performance Highlights
Carbonxt delivered strong operational and financial performance in the December 2024 quarter. The Kentucky facility reached mechanical completion, and revenue momentum continued.
Key Achievements:
- Kentucky Facility Progress: Mechanical completion finalised on 18 December 2024.
- PAC Sales Growth: Increased by 14%, contributing 68% of total revenue.
- Cost Savings: Achieved $1.5 million in annual expense reductions.
- New Contracts: Secured additional orders from Wisconsin Public Service (WPS) and ReWorld, valued at $3.6 million for H2FY25.
Managing Director Warren Murphy highlighted the Company’s strong position:
“The December quarter marks a major milestone for Carbonxt, with the mechanical completion of our Kentucky facility and a focus on ramping up production. Our disciplined cost management and strategic market positioning ensure we are well-placed for stronger revenue growth in 2025.”
Investor’s Outlook
Carbonxt Group Limited (ASX: CG1) is currently trading at A$0.061, reflecting market confidence in its growth trajectory. The Company has a market capitalisation of A$23.69 million, positioning it as an emerging player in the cleantech sector. Over the past 52 weeks, Carbonxt’s stock has fluctuated between A$0.052 and A$0.100.
The Company has maintained consistent shareholder interest with 388,484,143 shares on issue, particularly after its recent capital raises. The upcoming Share Purchase Plan (SPP) at $0.06 per share offers existing investors an opportunity to increase their holdings at a price aligned with recent institutional placements. Given the strong demand for activated carbon and the Company’s expansion into the US water treatment market, investors are closely watching Carbonxt’s progress in 2025.
End Note!
Carbonxt’s Share Purchase Plan offers a significant opportunity for shareholders to invest at a key growth phase. With a strengthened balance sheet, an operational Kentucky facility, and rising demand for activated carbon, Carbonxt is set for accelerated expansion in 2025.
The Company’s cost optimisation, strong contract pipeline, and market positioning provide confidence in its long-term value creation. Shareholders can participate in the SPP to support Carbonxt’s next phase of growth.
