Highlights

• Carbonxt (ASX:CG1) has successfully completed an Institutional Entitlement Offer, raising ~AU$0.4 million.
• The Institutional Entitlement Offer is one of the components of its entitlement offer targeting a total capital raise of AU$6.6 million.
• The company plans to use the funds raised for the construction and development of its new production facility in Kentucky.

In the latest ASX release, cleantech company Carbonxt Group Limited (ASX:CG1) has announced about a capital raise of AU$0.4 million after successful completion of the institutional component of its accelerated non-renounceable entitlement offer.

Approximately 2.9 million new fully paid ordinary securities in Carbonxt will be issued at an offer price of AU$0.14, as per the Institutional Entitlement Offer.

Must Read: What’s paving success path for Carbonxt’s (ASX:CG1) HydRestor™ technology?

The ASX-listed firm has planned to direct all the proceeds from the offer towards the development activities at its new activated carbon plant in Kentucky, USA. The establishment of the Kentucky plant is a part of the company’s Joint Venture (JV) with private US business, KCP.

The production facility in Kentucky marks a transformational development for Carbonxt. The plant will inflate the overall product capacity of the company, becoming a factor for higher revenue as well as profit.

The new plant will boost CG1’s total annual production capacity of activated carbon powder and pellet products by 57% to 25,000 tonnes/year, once functional at full potential.

Management Commentary

Also Read: Carbonxt (ASX:CG1) tapping large and unique opportunity in LNG sector

Overview of Retail Entitlement Offer
Carbonxt has schedule to open the retail component of the entitlement offer at 9:00 AM (Sydney time) on Friday, 5 August 2022 and close at 5:00 PM (Sydney time) on Friday, 2 September 2022.

The Retail Entitlement Offer is open for participation by all eligible security holders who hold securities in CG1 as at 7:00 PM (Sydney time) on 2 August 2022. The Eligible Retail Securityholders need to have a registered address in Australia or New Zealand.

CG1 shares were trading at AU$0.130 midday on 02 August 2022, with market capitalisation of AU$28.42 million.