- Cleantech company Carbonxt (CG1) receives commitments to raise $7 million via a two-tranche placement
- Seventy million fully-paid shares will be issued at 10 cents which is a 4.8 per cent discount to Carbonxt’s last closing price
- Carbonxt will primarily use the money to fund its initial 40 per cent share in a new activated carbon plant in Kentucky, US with joint venture partner KCP
- This facility will increase Carbonxt’s current production capacity from 16,000 tonnes to over 24,000 tonnes and eases its entry into the granular activated carbon market
- Shares in Carbonxt have been trading at 10.5 cents since September 12
Cleantech company Carbonxt (CG1) has received commitments to raise $7 million via a two-tranche placement.
A total of 70 million fully-paid shares will be issued at 10 cents – representing a 4.8 per cent discount to Carbonxt’s last closing price.
Carbonxt will primarily use the money to fund its initial 40 per cent share in a new activated carbon plant in Kentucky, US with joint venture partner KCP.
The company has the option to purchase an additional 10 per cent stake in the joint venture for US$2.2 million (A$3.38 million), exercisable at the earlier of September 30, 2023 or one month after operations begin.
This facility will increase Carbonxt’s current production capacity from 16,000 tonnes to over 24,000 tonnes with further expansions available.
It also eases Carbonxt’s entry into the US$500 million granular activated carbon market, thus significantly increasing its addressable market.
“This funding, which is subject to shareholder approval, ensures we will have the production capacity to position Carbonxt as a leading player in the US market with multiple activated carbon products,” Managing Director Warren Murphy said.
“The added manufacturing capacity, and the ability to deliver granular activated carbon products, will also allow us to tap into a much wider range of sectors.”
Shares in Carbonxt have been trading at 10.5 cents since September 12.