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Carbonxt (ASX:CG1) - Managing Director, Warren Murphy (right) - The Market Herald
Managing Director, Warren Murphy (right)
Source: Australian Manufacturing
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  • Activated carbon manufacturer Carbonxt (CG1) has received firm commitments to undertake a $2.1 million placement
  • All up, 14 million fully-paid ordinary shares will be issued to sophisticated and professional investors at 15 cents
  • This price represents a 3.4 per cent premium to Carbonxt's closing price of 14.5 cents on April 30
  • The company will also offer shareholders the opportunity to participate in a share purchase plan or rights issue to raise up to a further $2 million
  • Carbonxt will primarily use the money to fund the development of its activated carbon pellet products which reduce environmental pollutants
  • Shares in Carbonxt are down 6.9 per cent, trading at 13.5 cents

Activated carbon manufacturer Carbonxt (CG1) has received firm commitments to undertake a $2.1 million placement.

The company entered a trading halt on May 3 but did not disclose how much it intended to raise or what it would use the funds for.

All up, 14 million fully-paid ordinary shares will be issued to sophisticated and professional investors at 15 cents.

This price represents a 3.4 per cent premium to Carbonxt's closing price of 14.5 cents on April 30 and a 2.47 per cent discount to the 10-day volume-weighted average price.

Carbonxt will also offer shareholders the opportunity to participate in a share purchase plan or rights issue to raise up to a further $2 million.

Subject to shareholder approval, company managers and directors will subscribe for at least $400,000.

Carbonxt will primarily use the money to fund the development of its activated carbon pellet products.

These activated pellets reduce environmental pollutants and the company recently signed a commercial agreement with Kentucky Coal Processing to expand its manufacturing capacity of the pellets.

"We are extremely pleased to see the level of support from a number of new high-quality investors as well as the continued support of existing shareholders," Managing Director Warren Murphy said.

"We are now well funded and excited about the potential we can leverage from our strong portfolio of cleantech products," he added.

Shares in Carbonxt are down 6.9 per cent, trading at 13.5 cents at 1:50 pm AEST.

CG1 by the numbers
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