Carbonxt Group Ltd. · ASX:CG1
Carbonxt — Investor Presentation (July 2022)
29 slides from Carbonxt's investor presentation, Jul 29, 2022
Slide 1: Capital raising to support new production facility
Cleantech company reducing emissions and pollutants Capital raising to support new production facility Investor Presentation 29 July 2022 ASX: CG1
Slide 2: Company snapshot
Company snapshot ❖ ASX listed Cleantech company producing SUMMARY BOARD OF DIRECTORS patented activated carbon products (‘AC’) to Share Price ($) 1 $0.15 eliminate toxic pollutants from industrial gas and Name Position Shares (m) Shares on Issue (m) 189.5 wastewater streams Market Cap. ($m)1 $28.4 M
Slide 3: Transformational investment opportunity
Transformational investment opportunity CG1 has signed term sheets for the establishment and financing of 50% ownership in a new state-of-the-art activated carbon plant located in eastern Kentucky, USA in collaboration with KCP, an established, well capitalised and well connected participant in the
Slide 4: Kentucky project delivers significant production capacity
Kentucky project delivers significant production capacity Indicative Revenue A$m (CG1 Share)* ❖ New activated carbon production plant located in eastern Kentucky alongside 80 innovative waste to energy (‘WTE’) provider Inez Power LLC 70 60 ❖ Significantly increases production capacity and gross marg
Slide 5: Benefits delivered from unique plant characteristics
Benefits delivered from unique plant characteristics ❖ Design and engineering work underway, with first production anticipated prior to 30 June 2023 ❖ Strategic location adjacent to Inez Power’s WTE facility (refer image) ❖ Economies of scale for the initial construction and long-term operation of t
Slide 6: World class ESG credentials offered by Kentucky project
World class ESG credentials offered by Kentucky project Innovative Electric kiln technology - Improved energy efficiency from greater temperature regulation, while eliminating emissions created by technology conventional natural gas fired kilns No fossil fuels CG1’s processes avoids the use of fossi
Slide 7: Broadened product range underpinned by unrivalled IP
Broadened product range underpinned by unrivalled IP Proprietary Activated Carbon Pellet technology (‘ACP’) ❖ The only North American manufacturer of industrial ACP products, in a fast growing and largely underpenetrated market Activated Carbon Pellet (ACP) ❖ Entered US market in FY18 – $9m+ revenue
Slide 8: Strong macro tail winds driving the cleantech sector
Strong macro tail winds driving the cleantech sector Unprecedented levels of investment in low carbon cleantech assets – ESG mandated assets are projected to make up half of all professionally managed assets globally by 2024 CG1’s success in addressing major environmental concerns of airborne emissi
Slide 9: Broad industry applications with large addressable markets
Broad industry applications with large addressable markets NATURAL GAS FILTRATION LANDFILLS SOLVENT RECOVERY VOC ABATEMENT WASTE HEAVY POWERPLANTS WATER MANUFACTURING TREATMENT ❖ AC Peller market expanding rapidly across a broad range of industrial applications ❖ Pellets for the Granular Activated C
Slide 10: Recent successes and near-term value drivers
Recent successes and near-term value drivers ❖ New PAC orders valued at ❖ Entry into Joint Venture ❖ Strong market conditions $5m annually secured (50%) with KCP to with price increases of up develop a 20,000 ton per to 40% achieved ❖ LOI signed with US water annum ACP and GAC compared to pre-COVID
Slide 11: Revenue back to pre-COVID levels, record gross profit, EBITDA positive
Revenue back to pre-COVID levels, record gross profit, EBITDA positive ❖ Unaudited FY22 revenues exceed pre-pandemic levels: COVID-19 related Revenue, Gross Profit and EBITDA disruptions are now resolved. Expansion plans being executed to meet market 20 18.3 18.2 demand. 15.8 ❖ Demonstrable progress
Slide 12: Equity Raising
Equity Raising
Slide 13: Key details of the offer
Key details of the offer Capital raising details ❖ CG1 will undertake a pro-rata accelerated non-renounceable entitlement offer of 1 new share for every 4 shares on issue, to raise up to $6.6 million (“Entitlement Offer”) o $2.0 million of the Entitlement Offer is underwritten, with sub-underwriting
Slide 14: Sources & Uses of Funds
Sources & Uses of Funds Sources of Funds $m ❖ The funds raised under the offer will be used to fund the capital expenditure Underwritten Entitlement Offer 2.0 requirements for the Kentucky facility currently under construction Convertible Note Facility 5.0 ❖ In addition to the funds raised from the
Slide 15: Equity raising timetable
Equity raising timetable Event Time and date (AEDT) Trading Halt Friday, 29 July 2022 Announcement of the Equity Raising, Institutional Entitlement Offer open Friday, 29 July 2022 Institutional Entitlement Offer closes 3:00pm, Friday, 29 July 2022 Announcement of results of Institutional Entitlement
Slide 16: Contact
CONTACT Warren Murphy Managing Director +61 (0) 413 841 216 w.murphy@carbonxt.com www.carbonxt.com
Slide 17: Risks
Risks
Slide 18: Risks
Risks Regulatory Risk Carbonxt is heavily reliant on US environmental policies and regulation, in particular the EPA’s MATS regulations that came into force in April 2016 to tightly regulate the emission of mercury released through the burning of coal, and the Effluent Limitation Guidelines (ELGS) w
Slide 19: Risks (cont.)
Risks (cont.) Brand Establishing and maintaining its brand in the industry is critical to growing the Company’s customer base and product acceptance. Prior to entering into supply Establishment agreements, the Company is required to undertake vigorous testing of its Activated Carbon solutions. While
Slide 20: Loan Facility Term Sheet Summary
Loan Facility Term Sheet Summary
Slide 21: Loan Facility term sheet summary
Loan Facility term sheet summary The Company has entered into a Term Sheet with Pure Asset Management Pty Limited (Pure) under which Pure makes available to the Company a secured term loan facility (Loan Facility) the terms of which may be summarised as below. It should be noted that the Company has
Slide 22: Loan Facility term sheet summary (cont'd)
Loan Facility term sheet summary (cont’d) Facility Terms 10. Warrants The Company shall be required to issue 50,000,000 warrants (Warrants) to Pure or its nominees with an exercise price (Exercise Price) being the lower of the following: (a) Exercise Price relating to each individual Warrant Shares
Slide 23: Convertible Note Term Sheet Summary
Convertible Note Term Sheet Summary
Slide 24: Convertible Note Facility term sheet summary
Convertible Note Facility term sheet summary The Company has entered into Term Sheets with Altor Capital Management and Regal Funds Management (Investors) under which the Investors makes available to the Company a convertible note facility (Convertible Note Facility) the terms of which may be summar
Slide 25: Convertible Note Facility term sheet summary (cont'd)
Convertible Note Facility term sheet summary (cont’d) Facility Terms 9. Valuation Ceiling and The Valuation Floor and Valuation Ceiling are subject to a repricing mechanism in the event that the Company raises equity or any other type of security which has an implied Floor Repricing equity price per
Slide 26: Convertible Note term sheet summary (cont'd)
Convertible Note term sheet summary (cont’d) Facility Terms 13. Reporting of material The Company will give a general undertaking to provide all material information reasonably requested by the Investors. information 14. Transferability The Notes are freely transferable, unless to a competitor. 15.
Slide 27: Disclaimer
Disclaimer
Slide 28: Disclaimer
Disclaimer This presentation has been prepared by Carbonxt Group Limited ACN 097 247 464 (“Carbonxt”) in relation to its entitlement offer (“Offer”) of new shares in Carbonxt (“New Shares”). Summary information This Presentation prepared by Carbonxt, contains summary information about Carbonxt and i
Slide 29: Disclaimer (cont.)
Disclaimer (cont.) Past Performance Past performance information contained in the presentation is given for illustration purposes only and should not be relied upon as (and is not) an indication of future performance. Actual results could differ materially from those referred to in the presentation.