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- Battery anode company Talga Group (TLG) has announced its plan to raise up to $35 million through a placement and share purchase plan
- Talga entered a trading halt this morning about the raise and has released the details earlier than expected
- The placement will raise $25 million through the issue of over 17.2 million shares at $1.45 per share, representing a 17.8 per cent discount to Talga’s last traded price
- The money will go towards building an electric vehicle anode pilot plant to support production and development of the Vittangi Anode Project in Sweden
- The remaining funds will be used for general working capital
- The share purchase plan will open once the placement is completed and aims to raise up to $10 million
- Talga last traded at $1.76 on Monday, December 14
Talga Group (TLG) has announced its plan to raise up to $35 million through a placement and share purchase plan (SPP).
The battery anode and graphene producer entered a trading halt this morning regarding a capital raise.
At first, shareholders were set to wait until Thursday, December 17, to find out the details of the raise. However, the materials stock has released the details sooner than expected.
Placement
Talga has launched a fully underwritten institutional placement to raise $25 million.
Most of these funds will go towards building Talga’s planned electric vehicle anode (EVA) pilot plant, while the remaining cash will be used for general working capital.
“The proceeds from the raising will be used towards constructing and operating our EVA pilot plant in 2021 as a key step to finalise the EV customer validation processes currently underway,” Managing Director Mark Thompson said.
The pilot plant will support Talga’s goal of processing around 400,000 tonnes of graphite per year over 14 years. The graphite will be sourced from Talga’s Vittangi Anode Project in Sweden.
“The EV revolution is here today and Talga is ideally positioned to build a new low-cost, large-scale graphite anode supply chain outside of Asia to serve the European and North American markets,” Mark said.
Overall, 17,241,380 shares will be issued to institutional and professional investors at $1.45 per share, representing a 17.8 per cent discount to Talga’s last traded price of $1.765 and a 17.3 per cent discount to the 30-day volume-weighted average price.
Talga’s shares will remain in a trading halt until the placement is completed.
Share purchase plan
Once the placement is complete, Talga will offer eligible shareholders the chance to participate in a non-underwritten SPP by applying for up to $30,000 worth of new shares.
The company is hoping to raise up to $10 million and plans to cap it at this amount. Although, the SPP isn’t underwritten which means it may raise more or less than $10 million and Talga has the right to accept more or scale back applications.
Money from the share purchase plan will also be used to support project development.
The SPP offer period is expected to open Monday, December 21 until and close Friday, January 15, 2021.
Talga last traded at $1.76 on Monday, December 14.
