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Novonix (ASX:NVX) - Managing Director, Philip St Barker
Managing Director, Philip St Barker
Source: Novonix
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  • Battery materials company Novonix (NVX) will raise $58.28 million to scale-up its processing facility in Tennessee
  • The raise includes a proposed institutional placement, a strategic placement and a rights issue to Australian and New Zealand Novonix shareholders for 29 cents per new share
  • The strategic placement could see the St Baker Energy Innovation Fund acquire up to 19.9 per cent interest in Novonix
  • With the new capital, Novonix aims to expand its anode material production from 500 to 2000 tonnes per annum, which is required to meet customer demand
  • The capital will also help Novonix fulfil an order from Samsung, assist in developing and commercialising the company’s dry particle microgranulation (DPMG) technology, and repay short-term loans
  • On the market this afternoon, Novonix remains in the grey and is selling shares for 66 cents each

Battery materials company Novonix (NVX) will raise $58.28 million to scale-up its processing facility in Tennessee.

The raise includes a proposed institutional placement, a strategic placement and a rights issue to Australian and New Zealand Novonix shareholders, for 29 cents per new share.

The institutional placement

The institutional placement is aiming to raise $5.65 million, using the company’s existing 15 per cent placement capacity.

Strategic placement

The strategic placement, which needs shareholder approval, will be offered to the St Baker Energy Innovation Fund (SBIF). This will aim to raise between $14.72 million and $19.45 million, however, this price depends on how many shares are issued in the placement and entitlement offer.

If the placement is successful, SBIF will acquire up to 19.9 per cent interest in Novonix.

Entitlement offer

Novonix’s entitlement offer is a one-for-one offer that is aiming to raise $37.91 million.

Directors Andrew Liveris, Philip St Baker, Tony Bellas, Robert Natter, Greg Baynton
and Rob Cooper will take up all or part of their entitlements under the Entitlement
Offer (which collectively will be a $3.06 million commitment).

Where will the funds go?

Funds from this raise will go towards expanding Novonix’s anode material production from 500 to 2000 tonnes per annum, which is required to meet customer demand.

The capital will also help Novonix fulfil an order from Samsung, assist in developing and commercialising the company’s dry particle microgranulation (DPMG) technology, and repay short-term loans.

Last year, the company signed an agreement with Samsung SDI to supply lithium-ion battery material.

And earlier this month, Novonix announced a breakthrough low-cost manufacturing method which can be applied to the production of both anode and cathode materials for lithium-ion batteries, known as DPMG.

“DPMG is a method for synthesizing highly engineered particles through the consolidation of fine materials, that may otherwise be waste, into particles that can be tens of microns and suitable for use in lithium-ion batteries,” Chairman Tony Bellas said.

Tony also notes that it is an exciting time for Novonix as it switches to commercial production of high-performance anode materials for lithium-ion batteries in electric vehicles (EVs) and energy storage systems (ESS).

“Funds raised will be applied primarily to scaling up our processing facility in Chattanooga Tennessee and the building of inventory to meet current sales contracts and potential future demand,” he said.

“The company is strategically placed as one of very few suppliers of high-grade synthetic graphite outside of China and the only producer in North America. All of our precursor materials are currently sourced in North America, mitigating risk associated with supply chains that are reliant on supplies from Asia or other parts of the world,” he added.

On the market this afternoon, Novonix remains in the grey and is selling shares for 66 cents each at 2:31 pm AEST.

NVX by the numbers
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