The Calix Ltd (ASX: CXL) share price is frozen after the company requested a trading halt this morning.
The Australian environmental technology company has since announced a global licence agreement with one of the world's largest building materials companies, Heidelberg Materials (FWB: HEI).
Calix is also launching a $60 million institutional equity raising. It will also run a share purchase plan (SPP) for ordinary ASX investors to raise up to another $20 million.
Calix will use the funds to accelerate the commercialisation of its technology for industrial decarbonisation.
This will include further work with Pilbara Minerals Ltd (ASX: PLS).
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Licence the 'first of its kind'
Calix said in a statement that the technology licence fee is a first-of-a-kind for the industry.
It comprises a royalty floor, a variable component linked to carbon price/value, and a royalty cap linked to costs versus alternative technologies.
As we've reported before, a bunch of Australian companies, including miners, have been trialling Calix technology to decarbonise their minerals.
The technology centres around a kiln developed by the Calix founder that can extract substantial amounts of carbon dioxide from metals and minerals. Additionally, Calix can adapt the kiln to work with various materials.
Calix has a 93% owned subsidiary, Leilac, that focuses on the decarbonisation of cement and lime. It's Leilac that has signed the deal with Heidelberg Materials.
The licence applies to any Heidelberg Materials facility where the Leilac technology is installed.
Heidelberg Materials operates 149 cement plants across five continents.
Calix said:
Cement and lime are amongst the largest industrial contributors to climate change, accounting
for roughly 8% of global CO2 emissions.The agreement with Heidelberg Materials is a key milestone in Calix's commercialisation of the Leilac technology, and Calix's strategy to develop great businesses that deliver positive global impact.
Why is Calix raising capital?
The capital raising will take the form of a fully underwritten institutional placement to raise $60 million. It will comprise the issuance of 13.2 million shares at an issue price of $4.55 per share.
The Calix share price is currently in the freezer at $5.12.
There will also be a non-underwritten SPP to raise up to an additional $20 million.
Calix said the placement and SPP will "accelerate commercialisation of the Calix technology platform and
enable rapid further technology development targeted at significant strategic market opportunities".
The company elaborated further:
Specifically, proceeds from the Placement will be applied to accelerate commercialisation of Leilac's cement and lime decarbonisation technology; construct a lithium salt demonstration processing plant in JV with Pilbara Minerals; and fund a FEED study for a ZESTY Green Iron demonstration plant.
Calix has released an investor presentation this morning.
Calix share price snapshot
The Calix share price is down 21.5% year to date.
Over five years, the company's shares are up more than 700%.
