NoviqTech Faces Execution Risks as It Expands Blockchain and Carbon Solutions

Strategic Capital Raise and HBAR Investment

NoviqTech Limited (ASX: NVQ) has reported a robust December 2024 quarter marked by a strategic capital raise and a significant investment in the Hedera Hashgraph ecosystem. The company successfully raised $1.05 million through a placement supported by blockchain innovator Tony Guoga, chairman of Solana Strategies Inc. This funding is earmarked to accelerate the development of NoviqTech's blockchain solutions, particularly those focused on sustainability and transparency.

Complementing this capital injection, NoviqTech increased its HBAR token holdings by $300,000, bringing its total to approximately 1.91 million tokens valued at nearly $975,000 AUD. This move underscores the company's confidence in Hedera's distributed ledger technology as a foundation for scalable, energy-efficient ESG compliance and traceability solutions.

Expanding Market Reach with OTC Listing

In a strategic bid to enhance visibility and accessibility for North American investors, NoviqTech is progressing with an OTC market listing in the United States, anticipated in early February 2025. This listing will enable trading in US dollars during US market hours without diluting existing shareholders, positioning NoviqTech to capitalize on the expanding blockchain and cryptocurrency markets in the region. The company also signaled potential future listings on major US exchanges such as the NYSE or NASDAQ, contingent on market capitalization growth.

Strengthening Partnerships and Product Innovation

NoviqTech has deepened its strategic alliance with Global Resource Recovery (GRR), transitioning from a client to a channel partner role for its Carbon Central platform within Australia's oil and gas sector. GRR will actively market blockchain-enabled solutions to enhance transparency and accountability in recycling operations, tapping into a sector projected to reach USD 74.13 billion by 2032.

Further expanding its global footprint, NoviqTech entered a strategic partnership with Evercity post-quarter, integrating Carbon Central with Evercity's blockchain-enabled climate finance solutions. This collaboration aims to foster adoption in emerging markets such as East Africa, enhancing transparency and efficiency in carbon markets.

Advancements in Carbon Central Platform

The company continues to refine Carbon Central with updates that improve certification processes, tokenisation flexibility, and digital twin customisation. Notably, the platform now supports chemical recycling certification aligned with ISCC Plus standards, automating data logging and greenhouse gas emissions calculations on the blockchain. These enhancements bolster NoviqTech's position as a leader in blockchain-powered sustainability reporting and carbon management.

Operationally, NoviqTech reported a total cash outflow of $687,000 for the quarter, with staff and corporate costs comprising the majority. Despite this, the company ended the quarter with $755,000 in cash and cash equivalents, supplemented by $1.15 million in unused financing facilities, providing an estimated 2.8 quarters of funding runway.