Clean TeQ Water (ASX:CNQ) set to raise $5m for commercialisation activities

• Water treatment company Clean TeQ Water (CNQ) receives commitments to raise $5 million via a two-tranche share placement
• The company will issues roughly 13 million shares to institutional and sophisticated investors at 38 cents per share to raise the funds
• This issue price represents a discount of just under 21 per cent to Clean TeQ’s last closing price of 48 cents
• Clean TeQ says it will use the money to commercialise NematiQ and take advantage of emerging opportunities in metals recovery, as well as to strengthen its balance sheet
• Shares in Clean TeQ are down 13.7 per cent and trading at 41 cents at 1:54 pm AEDT

Water treatment company Clean TeQ Water (CNQ) has received commitments to raise $5 million via a two-tranche share placement.

The company will issues roughly 13 million shares to institutional and sophisticated investors at 38 cents per share to raise the funds.

This issue price represents a discount of just under 21 per cent to Clean TeQ’s last closing price of 48 cents.

Clean TeQ said it would use the money to commercialise its NematiQ product and take advantage of emerging opportunities in metals recovery, as well as to strengthen its balance sheet.

“This funding provides a strong platform to deliver on our significant pipeline of water solutions projects, progress NematiQ towards commercialisation and establish our metals recovery credentials in Direct Lithium Extraction,” CEO Willem Vriesendorp said.

CNQ said it planned to raise roughly $2.5 million under each tranche of the placement.

Tranche two, however, will be subject to shareholder approval with, major shareholder Robert Friedland set to subscribe for approximately $2 million.

Shares under tranche one are expected to settle on November 2 and be allocated on November 3, while shares under tranche two are expected to settle on December 19 and be allocated on December 20.

Shares in Clean TeQ were down 13.7 per cent and trading at 41 cents at 1:54 pm AEDT.