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Carbonxt Group secures $3M to advance Activated Carbon production facility

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Carbonxt Group (ASX:CG1) has completed a $3 million share placement.

The company has issued 46.4 million fully paid ordinary shares at 6.5 cents per share, representing a 9% discount to the 15-day volume weighted average price of Carbonxt shares up to Sept. 19.

The funds raised will be used to make the next instalment payment to NewCarbon Processing for constructing Carbonxt's flagship Activated Carbon production facility in Kentucky, USA.

Additionally, the capital will cover the costs of the offer and general working capital purposes.

The placement saw strong support from sophisticated and high net-worth investors and family offices.

An unlisted two-year option, priced at 10 cents per ordinary share on a 1:2 basis, accompanies the shares.

Shareholders will vote on this option at the upcoming annual general meeting.

"We thank all existing shareholders for their strong support and welcome onboard a number of new shareholders," said Warren Murphy, Managing Director of Carbonxt Group.

"We expect to make a further payment to our Kentucky investment company, New Carbon Processing, very shortly and look forward to updating on the significant scale-up of our business as the plant comes online," Murphy added.

The new shares will be issued on Oct. 1, and are expected to commence trading the following day.

Carbonxt Group is a cleantech company engaged in the development and sale of specialised Activated Carbon products, including Powdered Activated Carbon and AC pellets for the removal of pollutants and toxins in industrial processes.

At the time of reporting, Carbonxt Group's share price was $0.07.

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