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Novonix (ASX:NVX) - CEO, Chris Burns - The Market Herald
CEO, Chris Burns
Source: Novonix [Twitter]
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  • Battery maker Novonix (NVX) is trading higher this morning as it eyes a secondary listing on the NASDAQ stock exchange in New York
  • The company said it is exploring its options as far as a NASDAQ listing goes, though nothing has been confirmed just yet
  • Novonix has submitted a draft registration to the U.S. Securities and Exchange Commission for a potential initial public offering of American Depositary Shares
  • The potential NASDAQ listing comes after Novonix listed its shares on an over-the-counter market in September 2020
  • In January 2021, the company was added to the OTCQX Composite index and the OTCQX International Index
  • Now, the company may give international investors even more opportunities to become part of the Novonix story through the NASDAQ
  • Investors seem supportive of the move, with Novonix shares up almost 11 per cent to $2.34 each during morning trades

Battery maker Novonix (NVX) is trading higher this morning as it eyes a secondary listing on the NASDAQ stock exchange in New York.

The company told shareholders this morning it is exploring its options for the NASDAQ listing, though things are still in their early stages and nothing has been confirmed just yet.

Novonix has submitted a draft registration statement to the U.S. Securities and Exchange Commission in relation to a potential initial public offering (IPO) of American Depositary Shares (ADSs). An ADS is essentially a way for U.S. investors to buy shares in a company outside of the States.

The company said it is still yet to determine how many ADSs and underlying Novonix ordinary shares will be offered and what their offer price will be under the IPO.

Moreover, Novonix cautioned that no final decision has been made as far as its NASDAQ listing goes and, as such, there is no guarantee it will go ahead at all.

International opportunities

Novonix first flagged international markets when it revealed plans last June to sell its shares on over-the-counter markets to keep up with growing international demand for its securities.

At the time, the company said demand for renewables and green energy was driving a booming battery market. This bodes well for Novonix's single crystal cathode production technique, which is designed to improve the battery life of lithium-ion batteries.

The success of this production technique has seen Novonix shares increase thousandfold over the past 12 months.

In late September 2020, the company listed on the OTCQX Best Market in North America. Further to this, Novonix was added to the OTCQX Composite index and the OTCQX International Index in January 2021.

Now, with a potential listing on the NASDAQ, the battery maker is offering even more opportunities for U.S. investors to become a part of the Novonix story.

Novonix raised $115 million through an institutional placement in February, which it immediately followed up with a $16.45 million placement to company directors.

As such, the company has $131 million in available cash as of March 31, 2021.

While Novonix said the cash boost would be used to scale up its anode materials production, the healthy balance sheet could also support NASDAQ listing, although the company has not said how much the dual-listing would cost.

Investors seem supportive of the potential NASDAQ listing, with Novonix shares up 10.9 per cent at 10:40 am AEST to $2.34 each.

NVX by the numbers
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