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- ASX-listed cleantech company Carbonxt (CG1) calls a two-day trading halt as it prepares to tap investors for some fresh funds
- The company is yet to announce the details of the raise, so at this stage it’s uncertain how much Carbonxt plans to raise and for what it will use the funds
- Carbonxt’s net cashflow was positive by around $240,000 over the December 2021 quarter, but the company says its growth is dependent on building up extra production capacity
- As such, whether the upcoming capital raise is a simple balance-sheet-booster or whether something bigger is in the works for Carbonxt is still uncertain
- Shares in Carbonxt last traded for 24 cents each on Monday, February 7
ASX-listed cleantech company Carbonxt (CG1) has called a two-day trading halt as it prepares to tap investors for some fresh funds.
The company announced its plans to launch a capital raise on Thursday morning, though no further details about the raise have been revealed just yet.
As such, it’s still uncertain how much Carbonxt plans to raise and for what it will use the funds. The company said it planned to announce the details of the raise before Thursday, February 10, at which point shares will resume trading on the ASX.
Carbonxt develops and manufactures products to help other companies reduce carbon emissions and operate in compliance with environmental obligations. The company mainly operates in the United States.
Taking a look at Carbonxt’s most recent financial records, the company pocketed just under $4.9 million in customer receipts over the December quarter of 2022, taking first-half revenues to a “record level” for the business.
With around $2.8 million in quarterly manufacturing and operating costs and $1.7 million in staff, admin, and corporate costs, Carbonxt’s quarterly net cashflow was positive by around $240,000.
Carbonxt ended December with $1.16 million worth of cash in the bank.
Nevertheless, the company said at the end of January that while it expected second-half revenues in the 2022 financial year to be “significantly higher” than a year ago, its continued growth will be dependent on building up additional production capacity and optimising operations.
As such, whether the upcoming capital raise is a simple balance-sheet-booster to continue scaling operations or whether something bigger is in the works for Carbonxt is still uncertain.
Shares in Carbonxt last traded for 24 cents each on Monday, February 7. The company has a $40 million market cap.
