Carbonxt Group Ltd (ASX:CG1) has successfully restructured the lease for its Black Birch Powdered Activated Carbon (PAC) manufacturing facility in Georgia. The revised terms significantly reduce fixed costs while preserving cash. Under the new agreement, the lessor will accept Carbonxt shares as lease payments through September 2025. Carbonxt will issue 7,862,900 shares at 8 cents per share, representing a 37% premium to the 15-day VWAP, signaling strong investor confidence. This strategic shift will reduce monthly lease payments by over 50%, considerably lowering operating expenses while maintaining operational control of the Black Birch facility, a 10,000-ton-per-annum PAC production site operating since 2018.
Carbonxt Managing Director Warren Murphy stated that the lease restructuring delivers substantial fixed cost reductions, ensuring greater financial flexibility. The near 40% premium placement highlights investor confidence in the company’s growth trajectory. Given the significance of the agreement, the Board has extended the Share Purchase Plan (SPP) to allow shareholders time to participate. The closing date for the SPP has been extended to 27 March 2025.
The company had previously announced the SPP on 17 February 2025. This extension allows investors the opportunity to assess the material development regarding the Black Birch facility lease and the associated securities issuance. The SPP aims to raise capital to continue expansion efforts within the cleantech sector. Carbonxt develops and markets specialised Activated Carbon products, focusing on the capture of contaminants in industrial processes, specifically targeting air purification, wastewater treatment, and other liquid and gas phase markets.
