CG1 Strengthens Balance Sheet to Support Kentucky Growth

Carbonxt Group Limited has strengthened its balance sheet to support growth in Kentucky through an agreement with major shareholders Phelbe Pty Ltd and Pure Asset Management. This restructuring plan involves subscribing for $3.5 million of convertible notes, conversion of notes to equity, and exercise of warrants and options. The balance sheet will be de-geared to capitalize on opportunities as Kentucky's activated carbon facility moves into commercial production. Shareholder approval is expected in August.

The Company's strategic and financial outlook remains positive with strong operating cash flow and gross margins. The Kentucky facility's operational commencement is projected to substantially increase revenue and earnings. An early-conversion incentive is being offered to all option holders, encouraging them to convert their securities.

The recapitalization plan, if approved, will inject $11 million in cash and reduce debt by $5 million, transforming the Company's financial position. This announcement reflects the confidence of major stakeholders in Carbonxt's direction and long-term value. Investors are encouraged to ask questions to understand the details and implications of this important development for the Company.