NoviqTech to Divest Technology Assets in Favour of High-Growth CDR Sector

NoviqTech (ASX: NVQ) has announced it will divest its Carbon Central, Fuel Central, NoviqAI and Quantum Intelligence platforms and associated intellectual property to focus on the high-growth carbon dioxide removal (CDR) sector through subsidiary Coralia.

Consideration for the divestment to India’s Renaissance Infrastructure will total $1 million cash, payable as $200,000 upfront and $800,000 in quarterly instalments backed by security from Renaissance.

The proposed divestment will enable NoviqTech to focus on a large-scale offtake deal with Pure Data Centres Group for 70% of biochar CDR credits from its flagship Great Barrier Reef biochar project in north Queensland.

It will allow the company to redirect its capital and management resources toward Coralia’s growth while strengthening its own balance sheet and working capital position.

The company expects the deal to result in monthly savings of more than $100,000 as all staff members currently working with NoviqTech Services will transfer their jobs, accrued leave entitlements, and liabilities to Renaissance.

Shareholder Value Creation

NoviqTech’s board has determined that the greatest opportunity for shareholder value creation lies in the CDR sector through the development and commercialisation of Coralia’s biochar carbon removal projects and associated low-carbon concrete product development.

The divestment is expected to help advance these opportunities while accelerating a new research partnership with Melbourne’s Swinburne University of Technology to advance biochar applications in low-carbon concrete.

This collaboration will specifically target the data centre sector.

The strategy will position NoviqTech to participate in the rapidly growing global carbon removal market while leveraging its expertise in environmental data and carbon measurement, reporting and verification.

Managing Director Appointment

NoviqTech has announced the resignation of managing director Freddy El Turk and the appointment of executive director Timothy Brooks to the role, effective immediately.

Mr Brooks said the Renaissance deal represents a pivotal moment for the company.

“Divesting the Carbon Central and Fuel Central technology assets allows us to concentrate our efforts and direct capital to what we see as the most compelling growth opportunity for NoviqTech,” he said.

“Coralia has demonstrated notable commercial potential in the fast-emerging carbon removal market and this transaction enables us to accelerate our strategic focus while remaining disciplined in how we allocate capital.”