Novonix shares slump after discounted capital raise
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The news: Battery technology company Novonix has completed the institutional part of its discounted capital raising, with its shares sliding on resumption of trading on the ASX.
The numbers: Novonix said it had raised $44.4 million through a fully underwritten placement to institutional and sophisticated investors at an offer price of 60 cents each, a 37.8% discount to its closing price prior to Tuesday’s offer.
Novonix shares are down nearly 19% to 78 cents in early trading.
The company will raise $5 million more through a share purchase plan for eligible retail shareholders, and another USD5 million ($7.7 million) from largest shareholder Phillips 66 through a conditional placement.
The context: Novonix chair Robert J Natter said the capital raise was supported by existing institutional investors as well as new high-quality investors. The proceeds 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 source: ASX announcement
