Clean TeQ Water Raises A$6M at A$0.37 Per Share to Fund Expansion
Clean TeQ Water has raised A$6 million through a placement supported by major shareholders to fund its expanding international water and resource recovery projects while strengthening its balance sheet.
- A$6 million placement at A$0.37 per share completed
- Major shareholder Robert Friedland invested A$1 million
- Directors to participate with A$500,000 subject to shareholder approval
- Funds earmarked for project execution, debt reduction, and commercial expansion
- Placement shares rank equally with existing shares
Capital Raise Overview
Clean TeQ Water Limited (ASX – CNQ), a leader in sustainable water treatment and resource recovery technologies, announced the successful completion of a A$6 million placement. The placement was priced at A$0.37 per new share, representing a discount to recent trading prices but reflecting strong investor confidence amid a volatile market. Notably, the company’s major shareholder, Robert Friedland, subscribed for A$1 million, underscoring continued insider support.
The placement was conducted in two tranches – the first raised approximately A$5.5 million through existing placement capacity, while the second tranche involves a A$500,000 subscription by Clean TeQ’s directors, pending shareholder approval at an Extraordinary General Meeting scheduled for January 2026.
Strategic Use of Funds
Proceeds from the placement, combined with existing cash reserves, will primarily be directed towards accelerating Clean TeQ’s expanding pipeline of international projects. These include the multi-phase Rincon lithium refining project, the second phase of the Nyrstar project in Europe, and a tailings storage initiative in Australia, alongside a lithium pilot project in the Middle East.
Beyond project execution, the funds will also support strategic co-funding and licensing opportunities, debt reduction, and the expansion of the company’s commercial capabilities and workforce. CEO Peter Voigt emphasized that this capital injection positions Clean TeQ to move swiftly into execution mode across several transformational projects, reflecting a pivotal phase in the company’s growth trajectory.
Market and Shareholder Implications
The placement price of A$0.37 per share represents a 19.6% discount to the last closing price and a 15.9% discount to the 15-day volume weighted average price, a common approach to incentivize institutional participation. The new shares will rank equally with existing shares, ensuring no preferential treatment for new investors.
Canaccord Genuity acted as lead manager for the placement, receiving a combination of cash and equity fees, along with broker options subject to shareholder approval. The involvement of a reputable broker adds credibility to the capital raise and signals confidence in Clean TeQ’s strategic direction.
Looking Ahead
With the capital raise complete, Clean TeQ is poised to advance its international footprint and deliver on key projects that address critical environmental challenges such as freshwater scarcity and sustainable resource management. The upcoming shareholder meeting will be closely watched for approval of director participation in the placement, which could further align management incentives with shareholder interests.
Overall, this capital raise marks a significant milestone for Clean TeQ Water, reinforcing its commitment to growth and innovation in the water technology sector.
Bottom Line?
Clean TeQ’s latest capital raise sets the stage for accelerated project delivery and balance sheet strengthening, but investor eyes will be on upcoming shareholder approvals and project milestones.
Questions in the middle?
- Will shareholders approve the directors’ participation in the placement at the January EGM?
- How will the market react to the dilution from the new shares issued at a discount?
- What are the timelines and expected impacts of the key projects funded by this raise?
