Published On: December 5th, 2023
Figure 1: Carbonxt Group Limited
Carbonxt Group Limited (ASX: CG1) (“Carbonxt” or the “Company”) informed its stakeholders of its decision to initiate a capital raise. This initiative includes a non-renounceable pro-rata entitlement offer for the existing shareholders and a placement for sophisticated and professional investors. The intended outcome is to secure approximately AUD 2.94 million for strategic development and overall growth initiatives. Carbonxt is a leading clean-tech company under the leadership of Managing Director Mr Warren Murphy.
Key terms in the Announcement
The Offer provides eligible Carbonxt shareholders the opportunity to apply for one new fully paid ordinary share (New Share) for every 9 existing fully paid ordinary shares held as of 7:00 pm (Sydney time) on Friday, December 8th, 2023 (Record Date). The Offer Price for the New Share is AUD 0.06, collectively called the Entitlement. Up to 30,588,764 New Shares may be issued, potentially raising AUD 1.84 million before Offer expenses.
Underwriting and Utilization of Proceeds:
Chaleyer Holdings Pty Ltd., an Australian private company, has fully underwritten the Offer. The net proceeds generated through the Offer will be utilised to:
- Support the development of the Kentucky Facility: The net proceeds generated through the Offer will be utilised by the Company to fund the development of the Kentucky Facility financially. The Kentucky plant is positioned to produce 10,000 tons of high-grade activated carbon products per annum, solidifying Carbonxt’s pivotal role in water treatment and air purification, aligning with the US Environmental Protection Agency’s strategic roadmap
- Allocate working capital to the Company overall, covering the expenses associated with the Offer
Offer Price and Discounts:
- The Offer Price signifies a 7% discount compared to the closing price of AUD 0.065 on December 1st, 2023
- Additionally, it presents an 4% discount concerning the 10-trading day Volume Weighted Average Price (VWAP) up to and including December 1st, 2023
Eligibility and Participation:
The Offer is open to the Carbonxt shareholders with registered addresses in Australia and New Zealand as of the Record Date. However, those who do not have a registered address outside Australia and New Zealand as of the Record Date will not qualify for participation in the Offer.
Top-Up Facility:
The Offer comprises a top-up facility, permitting eligible shareholders to apply for additional New Shares beyond their Entitlements. This option is available if other eligible shareholders still need to claim a sufficient quantity of New Shares.
Listing and Equality:
New Shares issued through the Offer will rank equally with existing shares and are expected to be quoted on the Australian Stock Exchange (ASX).
Offer Details and Dispatch of Offer Documents:
Additional details about the Offer are outlined in the Offer documents, which will be sent to eligible shareholders according to the schedule provided by the Company in its announcement. Below is the plan.
Figure 2: Offer Timetable Overview for Shareholders of Carbonxt Group Limited
Significance of the Announcement to Shareholders and Investors
Some of the importance of the announcements are mentioned below:
- It presents a unique opportunity for eligible Carbonxt shareholders to acquire additional fully paid ordinary shares at a favourable Offer Price, fostering potential capital growth
- The funding allocation for the Kentucky Facility underscores the Company’s strategic expansion, aligning with environmental initiatives
- Carbonxt’s Kentucky facility demonstrates operational advancements, financial commitments, and environmental alignment. Set to produce 10,000 tons initially, indicating scalability and growth, it signals growth opportunities and attracts investor interest
About Carbonxt Group LTD (CG1)
Carbonxt Group LTD (CG1) is a cleantech chemical manufacturing company founded in 2001. Based in Florida, United States, the Company provides superior, non-brominated (thus non-corrosive), and efficient oxidising activated carbon products, such as Powdered Activated Carbon (PAC) and Activated Carbon Pellets. Products from the Company are used in liquid and gas phase markets for air purification, wastewater treatment, and other liquid and gas phase applications.
About Carbonxt Group’s Managing Director, Mr Warren Murphy
Mr Warren Murphy, the Managing Director of Carbonxt Group LTD, boasts extensive experience leading numerous acquisitions and financings within the energy, resources, and infrastructure sectors. His notable achievements include spearheading the development of over 2,000 MW of Greenfield’s power stations and overseeing the acquisition of more than 3,000 MW of generation. Previously, as Co-Head of the Australian Infrastructure & Project Finance Group and Head of Energy at Babcock & Brown, Warren played a crucial role in establishing the energy sector capability in Australia and New Zealand. Carbonxt’s Managing Director, Mr Warren Murphy, has made directorial contributions to ASX-listed companies such as Sydney Gas Limited and Alinta Limited, as well as unlisted companies like Coogee Resources Limited.
Figure 3: Carbonxt Group Ltd’s Managing Director, Mr Warren Murphy
Investor’s Outlook
- This announcement presents an excellent opportunity for Carbonxt shareholders to acquire additional fully paid ordinary shares at an attractive Offer Price, potentially fostering capital growth
- The offer price of AUD 0.065 per New Share represents a 7.7% discount to the last closing price and an 11.4% discount to the 10-day Volume Weighted Average Price (VWAP), enhancing the attractiveness of the investment
- As of December 4th, 2023, Carbonxt Group Limited’s share price was AUD 0.065 per share, with a 52-week range of AUD 0.046 to AUD 0.100
- The Company’s market capitalisation was AUD 17.61 million as of December 4th, 2023
- As of December 4th, 2023, Carbonxt Group has nearly 299 million shares on issue
Disclaimer
The Content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content), is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is not a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should inquire about any investments, and Colitco LLP strongly suggests the users seek advice from a financial adviser, stockbroker, or other professional (including taxation and legal advice), as necessary. Colitco, at this moment, disclaims any liabilities to any user for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some images/music used on this website are copyrighted to their respective owner(s). Colitco LLP does not claim ownership of any pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions, or are believed to be in the public domain. We have used reasonable efforts to accredit the head wherever it was indicated as or found to be necessary.
