- Activated carbon developer, Carbonxt Group (CG1) raises $4.5 million to meet customer demand in the U.S and other international markets
- Emerging from a trading halt, the company revealed details of a placement comprising 18.7 million new fully paid ordinary shares issued to investors at 24 cents
- Placement participants are also due to receive one free attaching option for every three placement shares, exercisable at 24 cents and expiring on June 21, 2023
- CG1 says it has received considerable demand for its activated carbon pellets and powder products in the US and plans to ramp up manufacturing capacity to meet the demand
- Company shares ended trade on Thursday 14.6 per cent higher at 27.5 cents
Activated carbon developer, Carbonxt Group (CG1) has raised $4.5 million to meet customer demand in the US and other international markets.
Emerging from a trading halt, the company revealed details of a placement comprising 18.7 million new fully paid ordinary shares issued to investors at 24 cents.
Placement participants are also due to receive one free attaching option for every three placement shares, exercisable at 24 cents and expiring on June 21, 2023.
The company plans to put the funds towards working capital purposes and to provide added balance sheet flexibility to pursue a number of growth initiatives.
With “considerable demand for our products in the United States”, according to Managing Director Warren Murphy, the initiatives will be primarily focused on fulfilling growing customer demand for activated carbon pellets and powders in this market.
“We plan to ramp up manufacturing capacity to meet demand,” Mr Murphy said, adding that “new potential customers in some large sectors are also materialising and a stronger balance sheet will help capture these opportunities”.
Joint Lead Managers for the Placement were Sanlam Private Wealth and Sixty Two Capital, which will both be entitled to receive a fee of six per cent on the funds both raised.
Company shares ended trade on Thursday up 14.6 per cent, trading at 27.5 cents.