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NOVONIX eyeing capital raising with an aim to become leading battery technology company

Source: Equity raising presentation, Feb 2021

 

Summary

  • NOVONIX is undertaking a capital raising, which will be followed by a Share Purchase Plan (SPP).
  • The SPP booklet will be dispatched to eligible shareholders on or around 4 March 2021.
  • NOVONIX continues to strengthen its position with progressive key relationships across the industry - Samsung SDI, Harper International, and Sanyo Electric.
  • In the first half of FY21, NOVONIX Limited (ASX:NVX) continued to focus on implementing its business plan.

It is an exciting time for NOVONIX Limited (ASX:NVX) as it progresses on the path to becoming a world-leading battery materials and technology company.

As the only qualified producer of high-grade anode material in North America, NOVONIX is rapidly scaling the production of high-performance anode materials for lithium-ion batteries. This is likely to be a boon to the growing demands of the electric vehicle (EV) and energy storage system (ESS) markets in the region.

The Company disclosed the results for the first half of FY2021 {the half year ended 31 December 2020 (1H21)}. It also announced a capital raising and SPP.

Equity raising

NOVONIX is undertaking a capital raising to raise ~ $146 million. It includes -

  • a fully underwritten placement to institutional and sophisticated investors to raise ~ $115 million via the issue of 39.7 million new shares at the issue price of $2.90 per new share.
  • 4 directors (Mr Trevor St Baker AO, Mr Andrew N Liveris AO, Admiral Robert J Natter, and Mr Robert Cooper) will raise ~ $16.45 million in aggregate.

Subsequent Share Purchase Plan

An SPP will follow the Institutional Placement. The SPP aims to raise ~ $15 million. Shareholders with a registered address in Australia or New Zealand will be entitled to subscribe for up to $10,000 worth of NOVONIX shares per shareholder.

Use of funds

Net proceeds from the institutional placement and SPP are likely to-

  • Fund expansion capex and working capital to scale NOVONIX Anode Materials production to 10,000tpa under the exclusive technology alliance with Harper International Corporation.
  • Fund an R&D program for NOVONIX Cathode Materials (based on the proprietary DPMG technology).
  • Support NOVONIX’s global growth initiatives, including organic expansion, partnerships, and licensing.

READ ABOUT NOVONIX’S RECENT DEAL HERE

Management comment

NOVONIX is continuing to strengthen its position with key relationships across the industry such as Harper International to develop next-gen furnace technology systems, says Chairman Mr Tony Bellas. He reflects on other recent achievements-

  • The recent approval by the U.S. Department of Energy via an innovation grant of USD 5.6 million shows the importance of the work that the Company is doing to develop the North American lithium-ion battery supply chain.
  • The five-year renewal of the sponsorship of the Dalhousie research program led by Professor Mark Obrovac, the engagement of Professor Jeff Dahn as Chief Scientific Advisor.
  • The Company is progressing its key relationships with Samsung SDI, Harper International, and Sanyo Electric.

READ ABOUT NOVONIX’S TECHNOLOGY PARTNERS HERE.

NOVONIX is exploring opportunities in new jurisdictions to establish anode production capacity to service the rapidly growing markets in Europe, the Middle East, and Asia. It continues to invest in its R&D and commercialisation programs, including the scale up of its Cathode business, utilising its proprietary DPMG technology.

ALSO READ: NOVONIX (ASX:NVX) renews Dalhousie University relationship with new research agreement

1H21- Key Takeaways

During the reporting period, NOVONIX continued the development of its advanced battery materials, equipment, and services businesses to serve the global Lithium-ion Battery market. The focus was on the implementation of a business plan.

Financial results were in line with management expectations. At the end of the half year -

  • NOVONIX had net assets worth over $58 million.
  • Cash and cash equivalents amounted to over $25 million.

NVX quoted $2.98 mid-day on 26 February 2021.

ALSO READ: NOVONIX’s (ASX:NVX) action-packed December quarterly activities report is out!

 

 


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