Carbonxt’s $0.7m Entitlement Offer Could Unlock $4.9m Capital Injection

Capital Raise to Reward Shareholders and Fuel Growth

Carbonxt Group Limited (ASX – CG1), a cleantech company specialising in Activated Carbon products, has announced a non-renounceable pro-rata entitlement offer to raise approximately $0.7 million. The Loyalty Options offer is designed to reward existing shareholders while providing the company with additional capital to support its expanding operations.

The offer allows eligible shareholders in Australia and New Zealand to subscribe for one Loyalty Option for every six shares held, at a nominal price of $0.01 each. Each option will be exercisable at $0.07 per share three years from the issue date, presenting a potential capital injection of up to $4.9 million if fully exercised.

Strong Underwriting Support Reflects Board Confidence

The entitlement offer is fully underwritten by Chaleyer Holdings Pty Limited, with sub-underwriting commitments from Phelbe Pty Ltd and all four directors of Carbonxt – Matthew Driscoll, Warren Murphy, David Mazyck, and Nicholas Andrews. This level of backing signals strong internal confidence in the company’s strategic direction and growth prospects.

Funds raised from the issue price will primarily cover the costs of the offer and provide working capital. Meanwhile, proceeds from the exercise of the options are intended to retire debt, cover additional offer costs, and further bolster working capital, enhancing financial flexibility.

Operational Momentum from Kentucky Facility Commissioning

Carbonxt’s timing for this capital raise aligns with the recent commissioning of its new Activated Carbon manufacturing facility in Kentucky. This facility is expected to materially uplift the company’s operational capacity, positioning Carbonxt to better serve industrial air purification and wastewater treatment markets.

The company’s focus on activated carbon products for contaminant capture in industrial processes addresses growing environmental and regulatory demands, potentially driving future revenue growth. The Loyalty Options offer thus serves as a bridge to capitalise on this operational momentum.

Key Dates and Next Steps

The offer opens on 1 September 2025 and closes on 10 September 2025, with options expected to be quoted on the ASX by 18 September 2025. Shareholders will be watching closely to see the uptake of these options, which will be a key indicator of confidence in Carbonxt’s near-term prospects.

While the offer is non-renounceable, the directors retain discretion to place any shortfall within three months after closing, ensuring full capitalisation of the raise.