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CARBONXT GROUP LIMITED Capital/Financing Update 2023

Dec 3, 2023

64640_rns_2023-12-03_76988734-05b0-418f-8746-ad31ed42fd98.pdf

Capital/Financing Update

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ASX RELEASE

4 December 2023

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CARBONXT launches a non-renounceable pro-rata entitlement Offer and placement to raise up to $2.94m

Carbonxt Group Limited ( Carbonxt or the Company ) is pleased to announce that the Company has decided to launch a capital raise comprising of a placement to sophisticated and professional investors ( Placement ) and non-renounceable pro-rata entitlement offer to existing shareholders ( Offer ) to raise approximately $2.94m.

Key terms of the Offer

The Offer will provide eligible Carbonxt shareholders the opportunity to apply for one new fully paid ordinary share ( New Share ) for every 9 existing fully paid ordinary shares ( Shares ) held as at 7.00pm (Sydney time) on Friday, 8 December 2023 ( Record Date ), at an offer price of $0.06 per New Share ( Offer Price ) (together the Entitlement ).

It is anticipated that up to 30,588,764 New Shares may be issued pursuant to the Offer, which would raise approximately $1.84 million before expenses of the Offer.

The Offer is fully underwritten by Chaleyer Holdings Pty Ltd.

The Company will use the proceeds raised under the Offer to:

  • provide funding to the Company for the development of the Kentucky Facility; and

  • provide working capital to the Company generally (including to fund the costs of the Offer).

The Offer price represents:

  • a 7.7% discount to the last closing price of $0.065 on 1 December 2023;

  • a 11.4% discount to the 10 trading day Volume Weighted Average Price (VWAP) up to and including 1 December 2023.

The Offer is open to Carbonxt shareholders with registered addresses in Australia and New Zealand as at the Record Date. Shareholders at the Record Date without a registered address outside Australia and New Zealand will not be eligible to participate in the Offer.

Existing holders of options and warrants will not be able to participate in the Offer unless they exercise their options and become a registered holder of Shares (upon exercising their options) prior to the Record Date.

The Offer will include a top-up facility that allows eligible shareholders to apply for additional New Shares in excess of their Entitlements, to the extent that there are sufficient amount of New Shares not taken up by other Eligible Shareholders.

The New Shares issued pursuant to the Offer will rank equally with the existing issued Shares of the Company and are expected to be quoted on the ASX.

More information regarding the Offer is set out in the Offer documents, which will be despatched to eligible shareholders in accordance with the timetable set out below.

The Offer documents will be accessible today from the ASX and Carbonxt's website, www.asx.com.au and www.cglimited.com respectively.

Carbonxt Group Limited. Level 8, 210 George Street, Sydney NSW 2000

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Key Dates

Dates
Event Date
Announcement of Offer, lodgement of Appendix 3B and Section Monday, 4 December 2023
708AA cleansing notice released to ASX
"Ex" Date Thursday, 7 December 2023
Record Date to determine eligibility to participate in Entitlement 7.00pm (Sydney time) on
Offer Friday, 8 December 2023
Dispatch of Offer Document and Entitlement and Acceptance Tuesday, 12 December 2023
Form and announcement that dispatch completed
Last day to extend Closing Date Thursday, 28 December 2023
Closing Date 5.00pm (Sydney time) on
Wednesday, 3 January 2024
New Shares expected to be quoted on a deferred settlement Thursday, 4 January 2024
basis
Announcement of results of Entitlement Offer, lodgement of Friday, 5 January 2024
Appendix 2A
Issue of New Shares under the Entitlement Offer Monday, 8 January 2024
Trading of New Shares under the Entitlement Offer expected to Tuesday, 9 January 2024
commence on ASX on a normal settlement basis
Holding statements sent to Shareholders Wednesday, 10 January 2024

The above dates are subject to change and are indicative only. The Company reserves the right to vary the dates and times of the Offer, including to close the Offer early, extend the Offer or accept late applications, without notifying any recipient of this Offer Document or any applicants, subject to the Corporations Act 2001 (Cth), the ASX Listing Rules and other applicable laws.

This announcement has been authorised for release to ASX by the Board of Directors of Carbonxt Group Limited.

ENDS

For Investor Enquiries Warren Murphy Managing Director +61 413841216 [email protected]

About Carbonxt

Carbonxt Group Limited. Level 8, 210 George Street, Sydney NSW 2000

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Carbonxt (ASX:CG1) is a cleantech company that develops, and markets specialised Activated Carbon products, focused on the capture of contaminants in industrial processes that emit substantial amounts of harmful pollutants. The Company produces and manufactures Powdered Activated Carbon and Activated Carbon pellets for use in industrial air purification, wastewater treatment and other liquid and gas phase markets.

Carbonxt Group Limited. Level 8, 210 George Street, Sydney NSW 2000