Novonix Shares Outperform ASX 200 After Oversubscribed Share Purchase Plan

January 15, 2025 04:47 PM AEDT | By Team Kalkine Media

Novonix Shares Outperform ASX 200 After Oversubscribed Share Purchase Plan — Image source: @Dmitriy/Pixabay

Oversubscribed SPP Surpasses Expectations

Novonix revealed that its SPP, priced at 60 cents per share, received overwhelming interest from eligible shareholders. Initially targeting AU$5 million, the company accepted valid applications for 68.6 million shares, raising a total of AU$41.2 million before costs.

To accommodate the strong demand, management expanded the size of the SPP by AU$27.3 million, bringing the total amount raised to AU$32.3 million before costs. While not all valid applications could be fully allocated, the company ensured a high level of shareholder participation.

Strategic Use of Funds

The proceeds from the SPP will be invested in purchasing, installing, and commissioning additional equipment at Novonix’s Riverside facility in Chattanooga, Tennessee. This initiative aims to further qualify products for key contracts with major global players such as Panasonic, Stellantis, and PowerCo.

The equipment upgrades are a crucial step in enhancing production capabilities and supporting the company’s growth plans as it works to solidify its position in the competitive battery technology sector.

Positive Momentum Over the Year

Despite a challenging market environment, Novonix shares have delivered a nearly 5% gain over the past 12 months.

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