Novonix pulls out of share issue as price plunges
Battery materials company Novonix has suspended its $15 million special share plan for retail investors after a sharp plunge in the stock price.
The ASX 200 has plunged on global inflation concerns (Photo: AAP Image/Erik Anderson)
Novonix shares dropped to a low of $2.35 on Thursday, but on Tuesday the shares were above $3 following its $115 million placement to institutions.
That means shares in the placement are badly underwater.
The stock has been swinging wildly in price in the past six months and the company said that because of the fluctuation it would suspend the SPP until there was stability.
However, the company’s directors have been given their allotment which raised $16 million, but this still needs to be ratified by shareholders.
The company has dropped the condition that the placement to directors would only proceed along with the SPP to retail investors.
Novonix had plans for a total $150 million raising to fund expansion of its anode business in the US. The SPP had been priced at $2.90, which is well above the current price.
