Carbonxt Group Limited (ASX: CG1), a cleantech company focused on activated carbon products for industrial purification, announced on 6 July 2026 a significant balance sheet restructuring plan. Agreed with major financial stakeholders Phelbe Pty Ltd and Pure Asset Management, the initiative aims to strengthen the company’s financial position as its Kentucky activated carbon facility moves towards commercial production. This strategic move provides immediate funding and a clear pathway to reduce senior debt, allowing Carbonxt to capitalise on scaling earnings.
The restructuring unfolds in two stages. Immediately, Phelbe will subscribe for A$2.0 million in new convertible notes, injecting fresh cash. Concurrently, Pure Asset Management will subscribe for A$1.5 million in convertible notes, offset against outstanding debt and accrued interest. The second stage, contingent on shareholder approval at an EGM expected in August 2026 and the commencement of Kentucky operations, involves Pure exercising outstanding warrants and options. Proceeds, approximately A$4.97 million, will reduce the senior debt facility from A$15.0 million to about A$10.0 million, with Pure waiving financial covenants for the loan’s remaining term.
Further, Phelbe will convert A$2.0 million of existing convertible notes to equity and exercise its options, raising an estimated A$3.4 million in cash. To encourage early conversion and exercise, Carbonxt will offer a 10% per annum discount on convertible notes and options to all eligible holders, excluding Pure’s warrants. These incentivised prices remain above the current share price of A$0.068. Shareholder approval will also be sought for Phelbe to increase its voting power above 20%, to around 23%, without a takeover bid. The anticipated maximum aggregate impact includes an A$11 million cash injection and a A$5 million net reduction in debt.
