Funding Delays Cloud Dotz Nano’s Carbon Capture Expansion Plans

Strategic Partnership Bolsters DAC Technology

Dotz Nano Limited (ASX – DTZ) has taken a significant step forward in its mission to advance carbon management technologies by signing a Memorandum of Understanding (MOU) with CarbonCapture Inc. (CCI), a leader in direct air capture (DAC). This collaboration aims to expand the evaluation of Dotz’s proprietary high-performance DAC sorbent material from gram-scale testing to proof-of-concept at the kilogram scale, marking a critical phase in demonstrating the material’s real-world viability.

CEO Sharon Malka highlighted the growing momentum behind Dotz’s technology, noting that accumulated data continues to validate the superior performance of their sorbents compared to existing materials. With the DAC market projected to reach $1.5 billion by 2027, driven largely by solid sorbent technologies, this partnership positions Dotz Nano to capitalize on a rapidly expanding sector.

Capital Raise Supports Development Amid Funding Challenges

In parallel with its technological progress, Dotz Nano secured AU$1.2 million (US$0.7 million) through a private placement involving new qualified and high-net-worth investors. These funds are earmarked to support the development of DotzEarth, the company’s flagship carbon capture technology. This capital injection provides crucial runway as Dotz navigates unresolved timing issues with Triton Funds LP under a standby subscription agreement, from which no funds have yet been received despite a drawdown notice.

The company is actively engaging with Triton to resolve these matters and is considering its legal options. Meanwhile, Dotz continues to evaluate its capital needs and explore additional funding avenues, including convertible notes with Mercer Street Global Opportunity Fund LLC, to ensure operational continuity and support its ambitious growth plans.

Operational Resilience and Financial Position

Despite geopolitical tensions in Israel, where Dotz is headquartered, the company confirms that its business continuity plans are effective, with no impact on operations or development activities. Financially, Dotz ended the quarter with US$0.4 million in cash, having utilized approximately the same amount in operational expenses during Q2 FY2025. Payments to related parties, including executive remuneration, totaled US$0.1 million.

Looking ahead, Dotz aims to scale sorbent production capacity, advance its DAC sorbent through pilot demonstrations, and validate additional applications for its point source sorbent technology. The company also plans to deepen partnerships with industry leaders to accelerate commercialization and impact.

A Year of Accelerated Innovation and Collaboration

Dotz Nano’s 2025 roadmap is ambitious, focusing on scaling manufacturing capabilities and advancing pilot projects that could prove pivotal in the global transition to a carbon-neutral future. The collaboration with CarbonCapture Inc. and recent capital raise underscore Dotz’s commitment to delivering innovative, cost-effective carbon capture solutions. However, the unresolved funding timing with Triton Funds injects an element of uncertainty that investors will be watching closely.