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Carbonxt Group Limited (ASX:CG1)

ALERT: Price-sensitive ASX Announcement for CG1
Current share price for CG1 : $0.070 -0.013 (-15.66%)+
Announcement
Release
31 Jul 2026 10:56AM
Price at Release
$0.083
Full Release
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Summary
Carbonxt Group Limited issued an update regarding its proposal for a 10% per annum discount as an early-conversion incentive for all CG1 options. However, the company was advised by the ASX that this discount might violate Listing Rule 6.23.3, which restricts changes that reduce the exercise price of options. Due to a portion of the options being quoted and exceeding 5% of the company's undiluted issued capital, a waiver from ASX is unlikely. Consequently, the company will not seek approval to apply this discount across all options but may pursue it for options linked to convertible notes held by Pure Asset Management and Phelbe Pty Ltd, contingent upon ASX's waiver approval. This initiative is part of Carbonxt's recapitalisation strategy to bolster its growth efforts in Kentucky.
Key Points
  • Carbonxt Group Limited announced an update to the early-conversion incentive for its CG1 options.
  • The company proposed a 10% per annum discount as an early-conversion incentive.
  • ASX Listing Rule 6.23.3 prohibits changes that reduce the exercise price of options, raising concerns.
  • ASX is unlikely to grant a waiver necessary to apply the discount to all CG1 options.
  • The company will not seek approval for a blanket discount but may apply it to options held by Pure Asset Management and Phelbe Pty Ltd.
  • The proposal is part of a recapitalisation effort to support growth in Kentucky.
  • A further update from the Board of Directors will be provided in due course.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.