Novonix (ASX:NVX) has completed a fully underwritten $44.4m institutional placement, issuing approximately 74.1 million new shares at $0.60 each. The placement, aimed at institutional and sophisticated investors, was well-supported by existing shareholders and welcomed several new investors.
Chairman Admiral Robert J Natter noted, “The 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 in anode materials production and enables access to a Department of Energy grant of up to US$100 million.”
The capital raising comes on the back 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 annum at its Riverside facility in 2025. Additionally, approximately 12.8 million shares will be issued to major shareholder Phillips 66 through a conditional placement, pending shareholder approval at an extraordinary general meeting scheduled for 22 January 2025.
The company has also announced a share purchase plan (SPP) targeting $5m from eligible Australian and New Zealand shareholders, offering the same $0.60 share price. However, the SPP is subject to regulatory waivers or shareholder approval.
Novonix manufactures high-performance synthetic graphite for lithium-ion batteries and develops patented technologies for the electric vehicle and energy storage markets.
Shares are currently 17.1% lower at 80 cents.
