Novonix shares dip after institutions swamp placement
Battery materials company Novonix has easily raised $115 million overnight and brought new institutional investors to its register.
The strategy meant more shares were on issue and that sent its share price down 9 per cent this morning when it returned to trade. However, despite the fall to around $2.98, it was still above the placement price of $2.90.
The funding was understood to be oversubscribed several times over but the company would not reveal the extent of the demand.
Chairman Tony Bellas said the equity raising was well supported by existing institutional shareholders.
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The funding will be used for the company’s growth plans, particularly its graphite anode business in the US and research and development in Canada. Anodes are a component of batteries used in electric vehicles and energy storage systems.
Novonix will now move towards raising a further $16 million from four existing directors of the company.
A share purchase plan to existing share holders will raise a further $15 million.
