Carbonxt Group Ltd. · ASX:CG1
Carbonxt — Investor Presentation (October 2018)
18 slides from Carbonxt's investor presentation, Oct 15, 2018
Slide 1: Successful Completion of A$3.0 million Placement and Announcement of 1 for 4 Entitlement Offer
For personal use only 15 October 2018 Successful Completion of A$3.0 million Placement and Announcement of 1 for 4 Non-Renounceable Entitlement Offer
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Carbonxt Group Limited ACN 097 247 464 (“Carbonxt”) in relation to its completed institutional placement (“Placement”) and proposed non-renounceable pro-rata 1 for 4 entitlement offer (“Entitlement Offer”) of new shares in Carbo
Slide 3: Disclaimer: Investment risk
Investment risk Disclaimer For personal use only An investment in Carbonxt’s securities is subject to known and unknown risks, some of which are beyond the control of Carbonxt, including, possible loss of income and principal invested. Carbonxt does not guarantee any particular rate of return or the
Slide 4: Transaction Overview
Transaction Overview ▪ Rationale For personal use only − Higher than expected demand for AC Pellet product – new capacity already being added to meet a portion of the anticipated demand; additional capex and working capital required − Significantly expanded addressable market – opportunity pipeline
Slide 5: Investment Summary
Investment Summary ✓ Higher than expected demand from new and For personal use only existing customers driving need for additional funding ✓ Regulatory tail-winds and thriving US economy driving customer growth and market opportunity in new markets ✓ The only large-scale US manufacturer of AC Pellet
Slide 6: Strategy & Outlook
For personal use only Strategy & Outlook
Slide 7: Key Products
Key Products For personal use only PAC AC Pellets WetJectTM • US market size: ~206,000 metric • Only large-scale US manufacturer (most • Uses less PAC compared to existing tonnes in coal utilities; ~215,000 AC pellets are imported from China) processes due to more contact time. metric tonnes in wate
Slide 8: Proposed Gainesville AC Pellet facility
Proposed Gainesville AC Pellet facility For personal use only Facility design ▪ Proposed capacity of 3,500 tons p.a. equivalent to annual revenue of US$8.8m to US$10.5m per annum (A$12.1-14.5m)(1) ▪ Expected pricing of US$2,500-$3,000 per ton and 30% gross margin once fully operational ▪ Expect faci
Slide 9: AC Pellet Pipeline
AC Pellet Pipeline For personal use only Indicative ▪ AC Pellet pipeline of >7,000 tons Demand Meets Customer Specifications p.a. or US$17.7-21.2 million revenue (tons p.a.) (A$24.9-29.9 million(1)) A 132 ✓ ✓ − Expected pricing of $2,500-$3,000 per ton − Targeting ~30% gross margins B 1,000 ✓✓ − Fir
Slide 10: Revenue Opportunity
Revenue Opportunity For personal use only A$ millions ▪ Current quarter revenue run rate of A$17.0 million ▪ Includes impact of start up issues of Arden Hills facility ▪ Additional A$13.3 million revenue once new facility is built and operational(2) ▪ Targeting 40% gross margins − Run rate basis by
Slide 11: Supply Contract and Guidance Update
Supply Contract and Guidance Update For personal use only Prospectus Current run rate Difference Product type (tons p.a.) (tons p.a.) (%) as at IPO (Jan-18) Q1 FY19 PAC in coal utilities (air phase and 3,010 4,312 +43% WFGD) PAC in other applications (cement, - 652 nm water, other industrial) AC pel
Slide 12: Transaction
For personal use only Transaction
Slide 13: Offer structure and terms
Offer structure and terms For personal use only Offer price of A$0.40 per New Share Pricing Discount of 23.1% to last close of A$0.52 on 10 October 2018 Discount of 26.3% to 10 trading day VWAP of A$0.54 up to and including 10 October 2018 Placement Placement of approximately 7.5 million New Shares
Slide 14: Timetable
Timetable For personal use only Monday, 15 October 2018 Entitlement Offer announced, Appendix 3B and Booklet lodged with ASX Wednesday, 17 October Ex-entitlement date Thursday, 18 October 2018 Record Date to determine eligibility to participate in the Entitlement Offer Entitlement Offer Opens Monday
Slide 15: Risks
For personal use only Risks
Slide 16: Risks
Risks For personal use only New Production Facility Carbonxt intends to construct a new AC pellet facility to meet additional customer demand. The facility is expected to be operational by 31 March 2019. Any delay or disruption to the expected commissioning date, or the supply chain will adversely a
Slide 17: Risks
Risks For personal use only Brand Establishment and Establishing and maintaining its brand in the industry is critical to growing the Company’s customer base and product acceptance. Prior Maintenance to entering into supply agreements, the Company is required to undertake vigorous testing of its Act
Slide 18: Contact
For personal use only Contact Warren Murphy Managing Director w.murphy@carbonxt.com +61 (0) 413 841 216
Carbonxt Group — Investor Presentation (October 2018) on 6ix