Key Highlights:
- NOVONIX to raise A$44.4 million through a fully underwritten placement to institutional investors, alongside a US$5.0 million (A$7.7 million) investment by largest shareholder Phillips 66.
- The placement price of A$0.60 per share represents a significant discount to recent share prices.
- The capital will fund equipment purchases and facility upgrades for the Riverside facility to achieve 3,000 tpa of production in 2025.
Overview of the Capital Raising
NOVONIX Limited (NASDAQ: NVX, ASX: NVX), a leader in battery materials and technology, has announced a capital raising initiative to raise approximately A$44.4 million. The capital will be raised through a fully underwritten placement to institutional and sophisticated investors, aimed at securing the necessary funding for the company’s Riverside facility to meet its ambitious production targets.
The offer price for the placement is set at A$0.60 per share, which represents a 37.8% discount to the closing price of A$0.965 as of November 25, 2024, and a 29.7% discount to the 5-day VWAP (volume-weighted average price) of A$0.853.
Phillips 66 Commitment
In addition to the institutional placement, Phillips 66, NOVONIX’s largest shareholder, has committed to invest US$5.0 million (A$7.7 million) in the company. This investment is subject to shareholder approval, which will be sought at an Extraordinary General Meeting scheduled for January 22, 2025. Should this investment be completed, Phillips 66 will own approximately 15.4% of NOVONIX’s issued share capital, further solidifying its role as a strategic partner in the company’s future growth.
The Share Purchase Plan (SPP)
In conjunction with the placements, NOVONIX will also offer an unconditional Share Purchase Plan (SPP) to eligible shareholders, allowing them to subscribe for up to A$30,000 worth of NOVONIX shares each, at the same price of A$0.60 per share. The SPP is expected to raise approximately A$5.0 million, and shares issued through the plan will rank equally with existing shares.
Use of Funds
The funds raised through the Institutional Placement, Conditional Placement, and Share Purchase Plan will be directed towards key investments in property, plant, and equipment at the Riverside facility. This will enable NOVONIX to achieve commercial production of 3,000 tonnes per annum (tpa) of high-performance synthetic graphite by 2025. The funds will also support the company’s efforts to secure the US$100 million grant from the U.S. Department of Energy.
The Path Forward
NOVONIX’s Riverside facility is crucial to the company’s ability to meet increasing demand for battery-grade synthetic graphite in the North American market. The plant is expected to play a key role in supporting the supply chain for the rapidly growing electric vehicle and battery sectors.
With an expanding customer base and growing partnerships, including the significant commitment from Phillips 66, NOVONIX is poised to strengthen its market position and continue its trajectory towards becoming a leading player in the global battery materials sector.
Important Dates & Conditions
- Record Date for SPP: November 25, 2024
- Extraordinary General Meeting (EGM) for Phillips 66 investment approval: January 22, 2025
- Expected SPP and placement completion: Early 2025
Chris Burns, CEO of NOVONIX, commented:
“We are excited to progress this capital raising, which will significantly advance our efforts towards achieving commercial production at Riverside. With the ongoing support of Phillips 66 and our institutional investors, NOVONIX is well positioned to continue leading the charge in high-performance synthetic graphite production for the battery sector.”
