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Novonix asks market for $150m and looks at global expansion

Business

Battery materials company Novonix will raise about $150 million through an equity raising which will include calling on its major shareholder Trevor St Baker for $12 million.

 

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The company has also revealed plans for a possible expansion into Europe, the Middle East and Asia.

The funds will be used to expand its anode material production in the US to 10,000 tonnes a year and include site expansion and infrastructure. Anodes are key component of the batteries used in electric vehicles.

Novonix said reaching the 2000 tonnes a year level would allow it to secure multi-year contracts and support further expansion with access to debt funding.

Chairman Tony Bellas said the company was progressing its key relationships with Sanyo Electric and Samsung SDI, both of which were major manufacturers of lithium-ion batteries.

“The company is exploring opportunities in new jurisdictions to establish anode production capacity to service the rapidly growing markets in Europe, the Middle East and Asia,” Bellas said.

“The company remains well positioned as the only qualified producer in North America of high grade anode material suitable for lithium ion batteries in electric vehicles and energy storage systems.”

It said apart from scaling its anode materials to 10,000 tonnes a year, the proceeds of the equity raising would fund a research and development program for cathode materials and support global growth initiatives including organic expansion, partnerships and licensing.

The offer price in the equity raising is $2.90, which was a 12 per cent discount to its recent share price of $3.29.

About $16.45 million would also be raised from its directors Admiral Robert Natter, Trevor St Baker, Robert Cooper and Andrew Liveris. That part of the deal would need shareholder approval.

That excludes chairman Tony Bellas and director Greg Baynton.

Following the deal, St Baker would hold about 15.97 per cent of the company. The last annual report has the St Baker Energy Holdings with a stake of 17.73 per cent.

Existing shareholders can subscribe for up to $10,000 in shares under the scheme to raise about $15 million. That could be scaled back depending on demand.

 

 

 

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