Carbonxt (ASX:CG1) raises AU$1.58M in oversubscribed share purchase plan - Kalkine Media

November 03, 2022 02:51 PM AEDT | By Manisha

Carbonxt (ASX:CG1) raises AU$1.58M in oversubscribed share purchase plan — Image source: © Fontgraf | Megapixl.com

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Highlights

Carbonxt (ASX:CG1) has announced about receiving immense support from shareholders for its most recent share purchase plan (SPP).

The company increased the offer to AU$1.58 million from the initial target of AU$1.0 million.

The proceeds will be used to fund the company’s initial 40% share in a Kentucky plant.

US-focused cleantech company Carbonxt Group Limited (ASX:CG1) has received ‘strong shareholder support’ for its share purchase plan (SPP) that was announced on 30 September 2022.

Considering the strong response, the company decided to raise the offer to AU$1.58 million from the initial target of AU$1.0 million. This will allow investors to receive all of their subscriptions under the SPP offer.

Under the SPP, shareholders were invited to subscribe for up to AU$30,000 of shares on the same terms as the recent placement with institutional investors at AU$0.10 per share.

Proceeds to fund Kentucky plant

The share purchase plan was declared with the objective of raising capital for the company’s initial 40% share in a new activated carbon (AC) plant in eastern Kentucky, the United States of America with JV (joint venture) partner KCP. The funds will be directed towards the offer cost as well as meeting general working capital needs.

Carbonxt expects the Kentucky facility to be one of the world’s most sustainable plants of its kind. With this plant, the company’s current production capacity is expected to jump by 57% from ~16,000 tonnes to more than 25,000 tonnes. The Kentucky plant is likely to commence operations before the first half of next year.

The company will be issuing around 15,803,000 shares on Thursday, 3 November 2022. The shares are likely to start trading on Friday, 4 November 2022.

To know more about the new Kentucky plant, read here

Management Commentary

CG1 shares last traded at AU$0.110 on 2 November 2022 with market capitalisation of AU$22.61 million.

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