The Calix Ltd (ASX: CXL) share price opened 5% lower this morning, as the company declared its plans to embrace future-focused technology, funded by a share placement.
The tech company announced it would accelerate its investments in environmental, social and corporate governance (ESG) projects. At the time of writing, the Calix share price is trading at $2.19, down 2.67%.
Let’s take a closer look at what the tech company announced this morning.
Environmentally-friendly tech
In today’s release, Calix advised it will issue 7 million new shares to sophisticated and professional investors at $2 each, hoping to raise $14 million for its technology projects. It was also offering a new share purchase plan to existing eligible shareholders, worth up to $30,000 per shareholder and capped at $3 million.
A large portion of the capital raised will go towards the company’s lithium manganese oxide (LMO) technology for lithium-ion cathodes. Calix specified that $4.5 million of the funds would be used to expand its testing program and lab capacity for the technology.
The company claims its LMO technology uses 6 times less energy in production than conventional manufacturing methods.
The capital raised from the share placement will also go towards the company’s other green projects. These include:
- Technology to reduce CO2 emissions in the cement, lime, and magnesia industries.
- A non-toxic, broad-spectrum fertiliser with anti-fungal and anti-pest properties.
- An earth-friendly product for wastewater treatment and another to refresh freshwater systems prone to green-algae outbreaks.
- Several trials and studies for more sustainable processing of various minerals and chemicals.
The announcement’s accompanying investor presentation showed Calix’s belief in the importance of ESG strategies.
Commentary from management
Calix CEO Phil Hodgson said Calix had received a “significant increase” in investors asking after its ESG strategies.
To turn these enquiries into value, we need more engineers, equipment, and dealmakers.
Following a strategic review on generating best value for our shareholders, we felt it was the right time to hit the accelerator and access some additional capital to fully resource these opportunities.
Calix share price snapshot
The Calix share price has risen by 109.7% year to date, having started the year trading at $1.03. It is also up by 224% over the last 12 months.
Calix has a market capitalisation of around $334 million with approximately 148 million shares outstanding, although that number will increase by at least 7 million next week.
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More reading
- Why the Calix (ASX:CLX) share price is surging 8% higher this morning
- The Calix (ASX:CXL) share price rips 13% higher on revenue growth
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Why the Calix (ASX:CXL) share price is down today appeared first on The Motley Fool Australia.
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