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Carbonxt Group - Capital raise to support Kentucky production facility and JV


Highlights:

-- Cabonxt has signed a term sheet for 50% ownership in a new state-of-the-art activated carbon plant located in eastern Kentucky, USA in joint venture with KCP, an established and leading industry player that is well capitalized and well connected in the US market (“Joint Venture”)
-- To support its initial contribution to the Joint Venture, Carbonxt is undertaking an equity capital raising via:
---- A 1-for-4 partially underwritten, non-renouncable accelerated entitlement offer to raise up to a maximum of $6.6 million ($2.0 million underwritten)
-- In addition, Carbonxt has signed term sheets for additional funding (subject to binding documentation and shareholder approval):
---- Convertible Note Facility to raise $5.0 million from two high quality Australian institutional investors; and
---- An increase in the existing Loan Facility provided by PURE Asset Management of $8.5 million
-- Supporting the new Kentucky Joint Venture, Carbonxt announces new contracts for ~2,400 tons at an average price of US$3,725 per ton, expected to generate 55% gross profit margins
-- Funds raised will be used to fund Carbonxt’s initial contribution to the Kentucky Joint Venture and plant currently under construction

Carbonxt Group Limited (ASX:CG1) (Carbonxt or Company) is pleased to announce a partially underwritten capital raise to raise approximately $6.6 million via a partially underwritten accelerated non-renounceable entitlement offer, with the proceeds used to fund Carbonxt’s initial contribution to the Kentucky plant and Joint Venture with KCP.

The Company is also pleased to announce today that it has signed a term sheet for a 50% ownership in a new state-of-the-art activated carbon plant located in eastern Kentucky, USA in collaboration with KCP, an established and leading industry player that is well capitalized and well connected in the US market.

For more information, download the attached PDF.

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