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- PPK Group (ASX:PPK) announced that Li-S Energy Ltd has completed a A$20 million pre-IPO capital raising.
- Li-S Energy Ltd has received binding commitments, which would lead to issue of 40 million shares at A$0.50 per share to institutional and sophisticated Investors.
- Blue Ocean Equities was the lead manager of the placement.
PPK Group (ASX:PPK) on Monday announced that Li-S Energy Ltd had completed a A$20 million pre-IPO capital raising. Li-S Energy Ltd is among seven joint ventures for which PPK has provided commercialisation funding.
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Li-S Energy Ltd has received binding commitments, which would lead to issue of 40 million shares at A$0.50 per share to institutional and sophisticated Investors. The company would be notionally valued at A$300 million on a post-money basis. Blue Ocean Equities was the lead manager of the placement.
Li-S Energy Ltd’s objective was to develop and commercialise a battery technology based on more advanced Lithium-Sulphur chemistry using Boron Nitride Nanotubes as a component and protective insulation layer to significantly improve battery cycle stability and energy capacity when compared to current Lithium-ion batteries.
Li-S Energy Limited was collaborating with its three largest shareholders being PPK, to obtain funding and commercialise the battery project, Deakin University, to provide the research and development, and BNNT Technology Limited, for the critical supply of BNNT.
After the completion of the Capital Raise, those three largest shareholders will retain 48.5%, 20.8%, and 8.3% ownership respectively of Li-S Energy Ltd.
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How will the funds be used?
The funds from the capital raise would be used to boost the Lithium Sulphur battery development program. A part of funds would be used to start constructing a new facility to produce Lithium Sulphur batteries for testing and demonstration purpose.
The shares of PPK Group traded higher by 0.68% to A$5.95 at 11:33 AM (AEDT). Some of the best performing ASX-listed stocks which have given as high as 300% returns so far this year include Lake Resources NL (ASX:LKE), Hawkstone Mining Ltd (ASX:HWK), and Piedmont Lithium Ltd (ASX:PLL).