Carbonxt Launches $2M Share Purchase Plan to Accelerate Kentucky Facility Growth

Capital Raising Momentum

Carbonxt Group Limited (ASX: CG1), a cleantech company specialising in activated carbon products, has launched a Share Purchase Plan (SPP) to raise up to $2 million at $0.06 per share. This initiative follows two successful capital raises in late 2024 that collectively brought in $4.02 million, strengthening the company’s financial position as it advances its flagship Kentucky facility.

The recent placements attracted strong interest from institutional and sophisticated investors, including high-net-worth individuals and family offices. The funds raised have been directed towards the construction and development of the Kentucky activated carbon plant, where Carbonxt has increased its ownership stake to 40.3%, with options to reach 50%.

Kentucky Facility Nears Commercial Production

The Kentucky facility has now achieved mechanical completion, marking a significant milestone. Carbonxt anticipates initial revenues from this plant in the first half of 2025. The facility is designed to meet growing industrial demand for activated carbon, particularly driven by tightening US Environmental Protection Agency (EPA) regulations targeting PFAS contaminants and other pollutants.

These regulatory changes have heightened demand for activated carbon filtration solutions, positioning Carbonxt to capitalise on a major growth opportunity in the US water treatment market. The company’s joint venture with Kentucky Carbon Processing further enhances supply chain security and operational capacity.

Financial Stability and Cost Efficiency

Alongside the capital raises, Carbonxt has achieved significant cost reductions estimated at $1.5 million annually. This improvement in operational efficiency is expected to bolster the company’s financial stability as it scales production and expands market reach.

The SPP is underwritten to $1 million by two major shareholders, Phelbe Pty Ltd and Chaleyer Holdings Pty Ltd, each underwriting $500,000. This underwriting provides a safety net ensuring that at least half of the targeted funds will be raised, regardless of shareholder participation.

Shareholder Participation and Market Outlook

The SPP offers eligible shareholders in Australia and New Zealand the chance to purchase up to $30,000 worth of shares at the same price as recent institutional investors, fostering broad shareholder engagement. The offer price represents a slight discount to recent trading prices, incentivising participation.

Carbonxt’s management emphasises the strategic importance of this capital raising in supporting the company’s growth trajectory. Managing Director Warren Murphy highlighted the company’s readiness to deliver long-term value as it enters a regulatory-driven market expansion phase.

Looking ahead, the company’s ability to expand capacity at the Kentucky facility and secure new contracts will be critical to sustaining accelerated revenue growth. The evolving regulatory landscape in the US continues to underpin demand for activated carbon products, offering a promising outlook for Carbonxt’s cleantech solutions.