NoviqTech has agreed to sell its Carbon Central and Fuel Central assets for AUD 1 million, freeing up resources to expand its biochar carbon dioxide removal projects through Coralia.
- Binding term sheet signed for AUD 1 million divestment
- Focus shifts to Coralia's biochar carbon removal projects
- Monthly cash burn expected to drop by over AUD 100,000
- Timothy Brooks appointed CEO, board reshuffle underway
- Transaction conditional on due diligence and shareholder approval
Strategic Divestment of Software Assets
NoviqTech Limited (ASX:NVQ) has taken a decisive step to streamline its operations by entering a binding term sheet to divest 100% of its NoviqTech Services subsidiary, which houses its Carbon Central, Fuel Central, NoviqAI, and Quantum Intelligence platforms. The buyer, Renaissance Group Holdings Limited, will pay a total of AUD 1 million, structured as AUD 200,000 on completion and the remaining AUD 800,000 in quarterly instalments secured by Renaissance.
This divestment marks a clear pivot away from software platform management toward a sharpened focus on biochar carbon dioxide removal (CDR), particularly through NoviqTech’s subsidiary Coralia. The company aims to reallocate capital and management resources to accelerate growth in the biochar CDR sector, which it views as its most promising avenue for shareholder value creation.
Financial and Operational Impact
The transaction is expected to reduce NoviqTech’s monthly cash burn by more than AUD 100,000. All staff associated with NoviqTech Services, along with their accrued leave liabilities, will transfer to Renaissance, effectively offloading these operational costs. This move should strengthen NoviqTech’s balance sheet and working capital position, providing breathing room to fund Coralia’s ambitious project pipeline and low-carbon concrete initiatives developed in partnership with Swinburne University of Technology.
Coralia’s flagship project, the Great Barrier Reef Biochar Project, is at the heart of NoviqTech’s renewed strategy. The company has secured a proposed offtake agreement with Pure Data Centres Group for 70% of the biochar carbon removal credits, a deal that underpins its commercial ambitions in the carbon removal market. This biochar approach offers durable carbon storage solutions aligned with voluntary and compliance carbon markets, particularly appealing to data centre operators and hyperscale customers seeking to neutralise residual emissions.
Leadership Changes Signal New Direction
Alongside the divestment, NoviqTech announced immediate board and management changes. Freddy El Turk has resigned, and Executive Director Timothy Brooks steps up as CEO and Managing Director. Brooks’ appointment underscores the company’s commitment to its biochar-focused growth strategy, with his remuneration package to be finalized and subject to shareholder approval.
Brooks commented that divesting the software assets allows NoviqTech to concentrate on what it sees as its most compelling growth opportunity, highlighting Coralia’s rapid commercial potential in the emerging carbon removal market.
Next Steps and Conditions
The transaction remains subject to several customary conditions, including Renaissance’s due diligence, execution of definitive agreements, shareholder approval at the upcoming AGM, and necessary regulatory consents. Completion is targeted within 30 days following shareholder approval, with exclusivity granted to Renaissance during this period.
Once completed, NoviqTech will focus exclusively on expanding Coralia’s biochar carbon removal projects, environmental data infrastructure, and carbon measurement and verification capabilities. This focus aims to position the company to capture growth in the global carbon removal market, leveraging its existing expertise and strategic partnerships.
Bottom Line?
NoviqTech’s divestment simplifies its operations and cuts costs, but the success of its biochar pivot hinges on scaling Coralia’s projects and securing firm commercial contracts.
Questions in the middle?
- Will NoviqTech secure shareholder approval and clear due diligence hurdles on schedule?
- How quickly can Coralia expand its biochar project pipeline beyond the Great Barrier Reef initiative?
- What commercial traction will the low-carbon concrete project with Swinburne University achieve?