- Carbonxt Group has announced a successful placement raising $4 million
- The placement consisted of 11.1 million shares at a price of 36 cents per share
- The company also invited suitable shareholders the opportunity to participate in a share purchase plan
- The share purchase plan will aim to raise an additional $1 million
- Carbonxt’s share price is currently down 3.61 per cent with shares trading for 40 cents apiece
Carbonxt Group has announced a successfully raised $4 million, before costs.
The institutional placement consisted of approximately 11.1 million shares to be issued at $0.36 per share.
The placement received strong demand from existing and new institutional investors.
Approximately 4.15 million shares will be issued within Carbonxt’s existing placement capacity to raise $1.5 million. Settlement is expected to occur on November 6, 2019.
A further 6.96 million shares will be issued at $0.36 per share however, this is subject to the annual general meeting with settlement expected in early December.
The price of $0.36 represents a 13.3 per cent discount to Carbonxt’s last closing price of $0.415 which was on October 25.
This represents an 11.2 per cent discount to the 10 day volume weighted average price (VWAP) on October 25.
Carbonxt will also offer existing shareholders the opportunity to participate in a share purchase plan (SPP) with the new shares to be issued at the same price as the placement.
Shareholders will have to opportunity to purchase up to a maximum of $30,000 worth of shares.
The SPP aims to raise a maximum of $1 million through the issue of approximately 2.78 million shares.
Funds raised under both the placement and SPP will be used to primarily fund working capital associated with growth in revenue.
Carbonxt Managing Director Warren Murphy is planed with the support the company has received and is looking forward to using the funds raised to help the environment.
“We are very pleased with the support for this capital raising, and are happy to welcome a number of high quality investors to our share register,” he said.
“We continue to see strong demand for the Company’s differentiated products, which are having a positive impact on the environment.”
Carbonxt’s share price is currently down 3.61 per cent with shares trading for 40 cents apiece at 3:04 pm AEDT.