Why is the Calix share price stooping to a new 12-month low on Monday?

The Calix Ltd (ASX: CXL) share price is having another disappointing day.

In afternoon trade, the environmental technology company’s shares are down 9% to a 52-week low of $4.04.

This means the Calix share price is down 26% over the last two trading sessions.

Why is the Calix share price crashing?

Investors have been hitting the sell button since Calix announced that the Federal Government has withdrawn some major funding for a couple of projects.

According to the release, following the Budget, AusIndustry informed Calix that $11 million in grant funding announced by the former Government would be cancelled. These funds were going to support Calix’s project with Adbri Ltd (ASX: ABC) to develop low emissions lime.

But it gets worse. Building materials company Boral Limited (ASX: BLD) has advised Calix that another $30 million in grant funding from the former Government has also been cancelled. These funds were going to be use for a Carbon Capture, Use and Storage (CCUS) project utilising Calix’s cement and lime decarbonisation technology.

One small positive, which hasn’t been enough to keep the Calix share price from sinking, is that the current Federal Government has announced that it will be implementing a new Carbon Capture Technologies program. This will see the government provide $141.1 million over ten years as part of a realignment of investment in carbon capture technologies. Though, there’s no guarantee that Calix will receive any of this funding.

Is this a buying opportunity?

One broker that remains cautiously optimistic on the company is Shaw & Partners.

This morning the broker retained its buy rating but slashed its price target by 29% to $6.00. Based on the current Calix share price, this implies potential upside of almost 50% for investors over the next 12 months.

Shaw & Partners recently was the co-manager of Calix’s capital raising that raised $60 million via an institutional placement.