Carbonxt Secures New Funding to Lift Ownership in New Carbon Processing.

Source: Kapitales Research

Highlights:

• Carbonxt has raised $600,000 through an equity placement involving its major shareholder and a group of high-net-worth investors.
• The funds raised are intended to strengthen the company’s working capital position and expand its ownership interest in New Carbon Processing to 46.7 per cent.
• The placement was completed at a discount to recent trading levels and executed under existing ASX placement capacity.

Placement Completed to Support Growth Initiatives

Carbonxt Group Limited (ASX: CG1) has completed a $600,000 equity placement to support further investment in its United States-based joint venture, New Carbon Processing. The placement was executed through the issuance of 6,666,667 new fully paid ordinary shares, priced at $0.09 each.

The placement was backed by major shareholder Phelbe Pty Ltd and other high-net-worth investors and completed under the company’s available issuance capacity in accordance with ASX Listing Rule 7.1.The offer price was set at a discount to the most recent closing share price and to the company’s five-day and ten-day volume weighted average prices.

Deployment of Capital and Ownership Expansion

Proceeds from the placement will be allocated to general working capital and an additional US$250,000 investment in New Carbon Processing, LLC. Following this additional investment, Carbonxt’s ownership interest in New Carbon Processing will increase to 46.7 per cent, strengthening its exposure to the business as it advances toward commercial operations.

Management views the increased stake as a strategic step that enhances Carbonxt’s participation in the potential upside of New Carbon Processing, particularly as commissioning activity progresses.

New Carbon Processing Update

The Kentucky facility operated by New Carbon Processing is moving closer to commissioning campaigns. Following initial start-up, certain remediation and additional works have been identified and are currently being progressed. These activities are intended to support commissioning campaigns and introduce operational redundancy, improving reliability as the facility transitions toward steady-state operations.

Equity Structure and Upcoming Actions

Shares issued as part of the placement will carry the same rights and entitlements as the company’s existing fully paid ordinary shares. Following completion of the share issue, Carbonxt will lodge an Appendix 2A with the ASX in line with listing requirements. After the placement is finalised, the company plans to submit a cleansing notice in line with section 708A(5) of the Corporations Act.

Outlook

With additional funding secured, Carbonxt is positioned to continue supporting New Carbon Processing through its commissioning phase while maintaining balance sheet flexibility. Investor focus is likely to remain on progress at the Kentucky facility, the timing of commissioning campaigns, and the contribution of New Carbon Processing to the company’s longer-term growth strategy as demand for specialised activated carbon products continues to expand.

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