- Cleantech company Carbonxt (CG1) is kicking off the new financial year by preparing to launch a capital raising plan next week
- While the details of the plan have not yet been revealed, the company has requested back-to-back trading halts, pending the official announcement of a capital raise
- At the end of March, Carbonxt had just over $1.18 million cash in the bank after spending $1.2 million the quarter before
- While the company said operating expenses were expected to be much lower over the June quarter, the available cash still leaves breathing room a little tight
- Shares in Carbonxt closed yesterday afternoon worth 18 cents each and will remain frozen until Wednesday, July 7
Cleantech company Carbonxt (CG1) is kicking off the new financial year by preparing to launch a capital raising plan next week.
Making use of the temporary emergency capital raising measures introduced by the ASX in last March in response to the COVID-19 pandemic, Carbonxt requested back-to-back trading halts this morning as it gears up to raise the extra cash, meaning shares will be frozen until Wednesday, July 7.
Details of how much cash the company plans to raise and how it will go about raising the cash have not yet been revealed.
Taking a look at Carbonxt’s latest quarterly financial report, the company spent roughly $1.2 million over the March quarter but had just $1.18 million cash in the bank at the end of the quarter. This means if spending levels were maintained through the final quarter of FY20, Carbonxt would only have enough funding to get through one more quarter.
At the time, however, the company said spending was expected to reduce significantly over the June quarter. In the quarterly report, which was released in May, Carbonxt explained that alongside $700,000 worth of federal grant schemes received after the end of March, only $209,000 in operating cash was expected to be used over June.
Still, this means cash might be starting to run a little thin given the tough trading environment brought about in recent months by the COVID-19 pandemic — particularly in the U.S., where Carbonxt runs its primary operations.
Carbonxt shares closed worth 18 cents each yesterday afternoon. The company has a $19.92 million market cap.