Novonix (ASX:NVX) requests trading halt; here’s why

October 19, 2022 11:53 AM AEDT | By Sonal Goyal

Image source: © Timonschneider | Megapixl.com

Why is Novonix’s share price on halt today?

Battery materials and technology company, Novonix has requested a trading halt on Wednesday morning as the company prepares to make an announcement regarding a ‘material funding arrangement’.

Phillips 66 had invested in Novonix

In August 2021, Phillips 66 shared that it has inked an agreement with Novonix, under which it has acquired a 16% stake in the group. Reportedly, Phillips 66 had subscribed for over 77,900,000 ordinary Novonix shares at the purchase price of US$150 million.

The transaction was closed on 30 September 2022.

Phillips 66 manufactures petroleum needle coke – a key precursor in the manufacturing of batteries that power personal electronics, electric vehicles, energy storage units and medical devices. The strategic investment in Novonix allows the company to directly assist in developing the US battery supply chain, said Phillips 66 in a statement.

About Novonix

Novonix is a materials and battery technology business that offers mission-critical services and advanced products to materials companies, battery manufacturers, automotive original equipment manufacturers and consumer electronics manufacturers.

The company’s mission is underpinned by an increased focus on environmentally conscious battery technologies.

At the end of half year (31 December 2022), the company reported net assets of AU$374,000,000 and the cash balance stood at approximately AU$259 million. During the period, the statutory after-tax loss was around AU$28 million.

In a statement, Novonix said that these financial results were in line with management’s expectations.

Historical share performance of Novonix

In the last five trading sessions, Novonix share price has gained 18.33%, and in a month, it has increased by 1.91%. In last one year, Novonix shares have recorded a fall of 63.40%, and on a year-to-date basis, it has dropped 79.75%. In the past five years, the share price has zoomed up 60.15%.

The market capitalisation of Novonix is AU$1.03 billion.

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