Dotz Nano Limited (ASX: DTZ) – an ASX-listed carbon capture technology company, announced on February 5th it has entered into a strategic funding agreement with Mercer Street Global Opportunity Fund, LLC (Mercer), a buyout US-based investment fund, to raise up to A$12 million (~$7.8 million) via issuance of convertible notes.
The funds will help towards expediting the development and commercialization of DOTZearth, the company’s carbon capture technology. Dotz Nano develops new sorbents that effectively capture CO2 and can be applied to various industries. The sorbents are solid and porous, specifically designed with an ideal pore size to capture the CO2.
The company also uses plastic waste as the primary raw material for its production. The sorbent was developed in the labs of Dr. James Tour, at Rice University, and is characterized by SINTEF – Norway’s largest energy and climate technology research institute.
“We are excited to partner with Mercer in this important phase of the Company’s evolution and delighted that an investment fund of its caliber has backed our technology and its potential… The placement provides the Company with the runway needed in the near-term so that it can execute on its growth opportunities and capitalize on the technology potential,” said Dotz CEO, Sharon Malka.
Mercer Street Global Opportunity Fund Investment Details
Under the Convertible Securities Agreement with Mercer, the Company will issue to Mercer (or its nominee) up to 13,200,000 convertible notes at a face value each of $1 as follows:
- 2,200,000 Convertible Notes on or about the date of this announcement to raise $2.0 million, including the Company granting Mercer a general security over all of its present and after-acquired assets (First Investment Amount);
- 1,650,000 Convertible Notes by no later than 29 February 2024 to raise $1.5 million (Second Investment Amount);
- 1,650,000 Convertible Notes in or around March 2024 to raise a further $1.5 million, subject to obtaining the approval of the Company’s shareholders at a general meeting of Shareholders to be held no later than 15 March 2024 (Third Investment Amount);
- It is subject to agreement by the Company and Mercer for further Convertible Notes to be raised up to a maximum of $7 million (Subsequent Investment Amount).