- Novonix (NVX) has completed its $115 million institutional placement of new, fully paid ordinary shares
- Around 39.7 million new shares will be issued to institutional and sophisticated investors at $2.90 per new share
- That represents an 11.9 per cent discount to the closing price of NVX shares on February 24
- The funds raised are expected to support the growth of Novonix’s anode materials production and ongoing research and development programs in Canada
- Novonix shares are down 7.29 per cent to $3.05 per share
Novonix (NVX) has completed its $115 million institutional placement of new, fully paid ordinary shares.
The company unveiled its placement and share purchase plan to raise $146
million to the market yesterday.
Now, NVX will issue approximately 39.7 million new shares to institutional and sophisticated investors at $2.90 per share, an 11.9 per cent discount on the closing price of NVX shares on February 24.
“The oversubscribed institutional placement was well supported by the
company’s existing institutional shareholders. It is also pleasing to have the
opportunity to welcome a number of new high quality domestic and international
institutional investors to our register,” said Novonix Chairman Tony Bellas.
The company is planning to use the funds raised to support the growth of its Anode Materials business in Chattanooga Tennessee and ongoing research and development programs based in Halifax, Nova Scotia.
“The funding considerably strengthens the company’s balance sheet and provides the flexibility to be able to accelerate both the scaling of our anode materials production and our R&D agenda in support of the rapidly growing U.S. and international markets for electric vehicles and energy storage systems,” commented Novonix Chief Financial Officer, Nick Liveris.
Settlement of the placement and allotment of the new shares is expected early next month. The new shares issued under the institutional placement will
rank equally with existing shares on offer.
Novonix entered a trading halt yesterday morning which was expected to end on Monday, however, the company requested that the trading halt be lifted on market open today.
Novonix is trading in the red, down 7.29 per cent to $3.05 per share at 10:10 am AEDT.