Novonix outlines nearly $50 million equity raising
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The news: Battery technology company Novonix is raising nearly $50 million via an institutional placement and a retail share purchase plan to fund equipment for its upcoming Riverside manufacturing facility in the US.
The numbers: The company will raise approximately $44.4 million through a fully underwritten placement to institutional and sophisticated investors, offering shares at 60 cents each, a 37.8% discount to its closing price on Monday.
It will raise another $5 million through a share purchase plan to allow eligible retail shareholders to participate.
In addition, largest shareholder Phillips 66 has committed to invest USD5 million ($7.7 million), subject to shareholder approval. Novonix shares are currently in a trading halt.
The context: Funds from the raising will be used to order, install and commission key equipment required to achieve commercial production of 3,000 tonnes per annum at the Riverside facility in the US in 2025.
Novonix is building the manufacturing facility in Tennessee which will become the first large-scale production site for synthetic graphite for the battery sector in North America and plans to eventually lift output to 20,000 tonnes per annum.
The announcement comes a day after Novonix signed a binding deal with PowerCo SE, the battery cell subsidiary of automaker Volkswagen Group to supply a minimum of 32,000 tonnes of high performance synthetic graphite material over a five year term starting 2027.
Earlier in the year, Novonix downplayed the chances of an imminent equity raise after an apparent leak detailed that it was planning a raise.
The source: ASX announcement
