NOVONIX Retail Entitlement Offer Heavily Oversubscribed, Board Recognises Shareholder Support

Summary

  • NOVONIX is the only company to break into battery materials market representing future of EV & renewables from North America or Europe.
  • Its mission is to assist global deployment of Lithium Ion Battery technologies for a better energy future.
  • Core competencies across all areas of cell technology development, and technology advantages in anode, cathode & electrolyte, coupled with strong connections with prominent companies in battery, auto, renewables & electronics space offer lucrative competitive edge.
  • Strong support from retail shareholders with heavily subscribed retail entitlement offer further strengthens NVX’s operational and financial positioning.

NOVONIX LIMITED (ASX: NVX) is an integrated supplier and developer of high-performance services , equipment and materials for global lithium-ion battery (LIB) industry.

It has currently been an exciting phase for the Company as it transitions to commercial production of high-performance anode materials for LIB for electric vehicles (EVs) and energy storage systems (ESS).

To commercialise PUREgraphite (NVX’s anode material), DPMG (a breakthrough low-cost manufacturing method for anode and cathode) and recapitalise its balance sheet, the Company had announced a significant $ 58.28 million capital raising on 27 May 2020. This was inclusive of a proposed institutional placement (to raise $ 5.65 million), a strategic placement to St Baker Energy Innovation Fund (to raise between $ 14.72 million and $ 19.45 million), and an entitlement offer to Australian and New Zealand shareholders (to raise $ 37.91 million).

While NVX issued ~82.7 million new shares at issue price of $ 0.29 per share under institutional placement and institutional entitlement offer on 5 June, NOVONIX has now unveiled strong support from retail shareholders for the Retail Entitlement Offer. The Offer was heavily oversubscribed, which means total applications received (including top-up facility applications) were significantly in excess of the shares offered under the Offer.

Results of Retail Entitlement Offer

The Retail Offer closed at 5:00 PM (Sydney time) on 18 June 2020, with below highlights:

  • It was heavily oversubscribed with applications under top-up facility substantially surpassing New Shares presented under the Offer
  • Consequently, only an extremely tiny amount of shortfall was available for allocation (3.3 % or $ 1.3 million)

As deciphered, the Offer received strong support from retail shareholders. Subsequently, NVX’s Board deemed it apt to recognize this overwhelming support of shareholders and has decided to allot a slice of the tiny amount of shortfall to every single qualifying shareholder who submits an application for top-up, with balance offered to every single priority sub-underwriter (on a pro- rata basis).

Board Allocates Portion From Shortfall To Qualifying Shareholders

NOVONIX has made the prompt decision to acknowledge and appreciate shareholders who took their rights in full and made applications under the top-up facility, priority sub-underwriters who have been long-standing Company supporters, whose initial backing delivered assurance to launch the transaction when market circumstances were very different.

Therefore, and as per the allocation policy (disclosed in the Offer booklet), NVX’s Board wishes to-

  • Allocate up to the lesser of a supplementary 1,724 New Shares (the top-up application) to each eligible shareholder applying for New Shares under the top-up facility.
  • Remaining 3,609,650 New Shares to be allocated to Priority Sub-Underwriters (pro-rata).

Purpose of Capital Raising

Funds raised from capital raising are indicated by NVX to be utilised for:

  • providing capex and working capital to fulfil an initial SAMSUNG supply contract
  • redeeming all outstanding convertible notes and repay loans
  • facilitating development and commercialization of the DPMG technology for cathode and other million-mile battery innovations
  • general working capital purposes
  • increasing production to 2,000 tonnes per annum and be debt free

NVX quoted $ 1.010, up ~3.1% on 24 June 2020 (11:56 AM AEST). Besides the stock has delivered a whopping ~519% return in the past three months as on 23 June 2020.


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