Novonix (ASX:NVX) is conducting a placement to raise $44.4 million to fund commercial production of high-performance battery-grade synthetic graphite.
The proceeds are expected to be allocated towards key property, plant and equipment and other facility costs that are required at the company’s Riverside facility to achieve commercial production in 2025, with a capacity of 3,000 tonnes per year.
The placement is fully underwritten and jointly led by Citigroup Global Markets Australia and Jefferies.
The offer price of $0.600 per new share represents a 29.7% discount to the five-day volume weighted average price of $0.853 on 25 November 2024.
In conjunction with the placement, Novonix’s largest shareholder Phillips 66 is investing US$5 million ($7.69 million). This investment will result in Phillips 66 holding a 15.4% stake in Novonix.
A share purchase plan is also being conducted, under the same offer price, to raise $5 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares on or around 3 December 2024. The SPP will close on 10 January 2025.
Novonix adds that capital investments in Riverside will further support the ability to access the US Department of Energy’s Office of Manufacturing and Energy Supply Chains grant of up to US$100 million.
This news comes after Novonix signed a binding offtake agreement with PowerCo SE, for the supply of a minimum of 32,000 tonnes of graphite material over a five-year term starting in 2027.
Novonix is a battery technology company focused on revolutionising the global lithium-ion battery industry with innovative, sustainable technologies, high-performance materials and more efficient production methods.
Write to Aaliyah Rogan at Mining.com.au
Images: Novonix
