Carbonxt Group Secures $3.02 Million Capital Raise for Expansion

Highlights:

• $3.02 million raised through the placement of 46.4 million shares at $0.065 per share.
• The funds will be allocated towards building the activated carbon facility in Kentucky, as well as covering general working capital expenses.
• The placement price reflects a 9% discount compared to the 15-day Volume Weighted Average Price (VWAP) as of 19 September 2024..

At the time of writing, Carbonxt Group Ltd (ASX: CG1) has successfully raised $3.02 million through a placement of 46.4 million fully paid ordinary shares at $0.065 per share. The placement garnered significant interest from a network of sophisticated and high-net-worth investors, featuring a 9% discount to the 15-day Volume Weighted Average Price (VWAP) as of 19 September 2024, which was the day before the announcement.

Fund Allocation

The capital raised will be dedicated to developing Carbonxt's main activated carbon production plant located in Kentucky, USA. This facility is being constructed in collaboration with NewCarbon Processing LLC, a joint venture alongside Kentucky Carbon Processing LLC. A portion of the funds will be used for the next installment payment to NewCarbon, while the remainder will cover general working capital and placement costs.

Investor Support and Terms

Investors were drawn to the opportunity, with the placement receiving strong backing from a mix of existing shareholders, family offices, and new investors. Along with the shares, the placement includes an unlisted, two-year option at $0.10 per ordinary share, exercisable on a 1:2 basis. The options will require approval from shareholders at Carbonxt's forthcoming Annual General Meeting.

Strategic Growth

Warren Murphy, Managing Director of Carbonxt, thanked shareholders for their ongoing support. He emphasized that this capital injection will be instrumental in scaling up the company's operations, particularly with the activated carbon plant coming online in the near future. Murphy highlighted the exciting growth phase ahead, which will further strengthen Carbonxt’s position as a leading supplier of activated carbon in the U.S. market.

The issuance of the new shares is scheduled for 1 October 2024, and trading is anticipated to begin on 2 October 2024.

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