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Highlights
- Black Birch facility lease extended through September 2025 with revised, cost-saving terms.
- Carbonxt to issue 7.86 million shares at 8 cents per share to the lessor as payment, reducing monthly lease expenses by over 50%.
- Share Purchase Plan closing date extended to 27 March 2025, allowing shareholders more time to assess the updated lease arrangement.
US-focused Carbonxt Group Ltd (ASX:CG1) shares were trading nearly 10% higher at AU$0.056 in morning trade on 13 March 2025. This surge followed the company’s announcement regarding a lease restructure and share purchase plan.
The company has renegotiated the lease for its Georgia-based Black Birch Powdered Activated Carbon (PAC) manufacturing facility, achieving a significant reduction in fixed costs while preserving cash reserves. Furthermore, the company has extended share purchase plan (SPP).
Strategic Lease Renegotiation
The Black Birch facility is a 10,000-ton-per-annum PAC plant that has been in operation since late 2018 under a 50-year lease agreement signed with a Louisiana-based lessor in 2017. The original lease required Carbonxt to make variable monthly payments based on production and sales volume of activate carbon. This was later amended to include a minimum fixed rent, applicable until 31 December 2024, or until the lessor’s financing was repaid.
Under the new amendment, the lease is now secured through September 2025, with major structural changes.
- The lessor has agreed to accept 7,862,900 CG1 shares at 8 cents per share as lease payments — representing a 37% premium to the 15-day volume-weighted average price (VWAP).
- The new structure reduces monthly lease expenses by over 50%, significantly decreasing operating expenses.
- Carbonxt retains full operational control of the Black Birch facility.
Extension of Share Purchase Plan (SPP)
In light of the lease renegotiation, Carbonxt has extended the closing date of its Share Purchase Plan (SPP), initially announced on 17 February 2025, to 27 March 2025. This extension allows shareholders additional time to consider the updated lease terms and the corresponding share issuance.
