Novonix (ASX:NVX) completed a fully underwritten $44.4 million institutional placement, issuing approximately 74.1 million new shares at $0.60 each. The placing, aimed at institutional and sophisticated investors, was well supported by existing shareholders and welcomed numerous new investors.
Chairman Admiral Robert J Natter noted: “Support from institutional shareholders and major backer Phillips 66 highlights confidence in Novonix’s growth strategy.” CEO Dr Chris Burns added: “This funding supports our expansion into the production of anode materials and provides access to a Department of Energy grant of up to $100 million.”
The capital raising takes place on the basis of supply agreements with Volkswagen’s PowerCo and global automotive group Stellantis.
The proceeds will fund an increase in Novonix’s production capacity to 3,000 tonnes per year at its Riverside facility in 2025. Additionally, approximately 12.8 million shares will be issued to major shareholder Phillips 66 through a conditional placing, pending the approval of shareholders at an extraordinary general meeting scheduled for 22 January 2025.
The company also announced a $5 million share purchase plan (SPP) from eligible Australian and New Zealand shareholders, offering the same share price of $0.60. However, the SPP is subject to regulatory waivers or shareholder approval.
Novonix produces high-performance synthetic graphite for lithium-ion batteries and develops patented technologies for the electric vehicle and energy storage markets.
The shares are currently down 17.1% at 80p.