CXL -11.7%: the green industrial technology company announced a licencing agreement with Bill Gates-backed Heirloom today, shares opened higher on the news however balance sheet concerns were only amplified by another deal which could drag the cash balance in the near term. Heirloom will employ Calix’s Leilac technology in all future Direct Air Capture (DAC) while the former will also direct $3m to research & development. Calix will receive a royalty for all CO2 captured with a floor price ($US3/tonne) + a variable rate based on the prevailing carbon credit price less costs of capital. The issue is that Calix requires near-term revenue, something this agreement is unlikely to provide and puts further pressure on a strained balance sheet.
MM remains neutral CXL
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