Carbonxt Group Limited (ASX:CG1) Launches Share Purchase Plan
Share Purchase Plan Details
Carbonxt Group Limited (ASX:CG1) has launched a Share Purchase Plan (SPP) aiming to raise up to $2.0 million at $0.06 per share. The plan follows two successful capital raises in late 2024, totaling $4.02 million, and is underwritten to $1.0 million by major shareholders Phelbe Pty Ltd and Chaleyer Holdings Pty Ltd.
Use of Funds
The funds from the SPP will support working capital and the continued development of Carbonxt’s Kentucky facility, which has achieved mechanical completion. The facility is expected to begin generating initial revenues in the first half of 2025, with potential for capacity expansion. The company has secured new contracts and expanded its market, positioning Carbonxt for accelerated revenue growth.
Operational Achievements and Financial Stability
Carbonxt has achieved significant cost reductions of $1.5 million annually, enhancing its financial stability. Strong demand for activated carbon is driven by PFAS regulations and industrial needs, particularly in the US water treatment market. EPA regulations are also increasing demand for activated carbon filtration solutions.
Executive Comments
Managing Director Warren Murphy stated, “We are pleased to offer this Share Purchase Plan following strong investor support in our recent placements. This initiative allows all shareholders to increase their stake in Carbonxt under the same terms as institutional investors. With our Kentucky facility advancing towards commercial output and growing demand for activated carbon, we are well-positioned to deliver long-term value. Entering the US water treatment market, supported by regulatory changes, presents a major growth opportunity. Additionally, our joint venture with Kentucky Carbon Processing enhances supply chain security and strengthens our ability to meet rising industrial demand. We appreciate your continued support and look forward to an exciting period ahead.”
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