Going flat: Tritium seeks emergency equity as Nasdaq issues warning
A year ago Jane Hunter was sharing a stage with US President Joe Biden and the electric vehicle charger company she led was a “double unicorn”. Now the Brisbane-based company, Tritium, has sought an emergency equity bailout from the State Government.
The company’s shares have gone into freefall after its unconventional listing _ through a special purpose acquisition company _ on the NASDAQ which some believe left it undercapitalised to deal with its growth.
Tritium’s shares peaked at $US13.33 in February 2022 when Tritium was lauded by the US Government as an example of the technology needed to drive adaption to renewable energy.
At that time its market value was more than $US1 billion and its enterprise value was more than $US2 billion.
Its shares are now valued at US22 cents and the company has been warned that at that level they were not compliant with Nasdaq rules. It has until April next year to meet the requirements of $US1 a share for 90 days or the company may not be eligible for an additional period of 180 calendar days to regain compliance.
The State Government would not confirm an approach from Tritium, but the Australian Financial Review reported the company was seeking $90 million.
“The Queensland Government is in dialogue with a number of companies about incentive measures, all of which are assessed to ensure they provide value for money for taxpayers,” a spokesman for Treasurer Cameron Dick said.
The Government has not given the company a formal response.
Tritium, which is backed by the St Baker Innovation Fund, has a factory in Brisbane but has become increasingly focused on the US where it has much bigger production facilities.
The company manufactures fast charging units for electric vehicles, essentially the petrol bowsers of the green economy and was founded by University of Queensland graduates David Finn, Paul Sernia and James Kennedy in 2001. Its growth since then has been dramatic.
Earlier this year, the St Baker fund ploughed another $US35 million ($A51.8 million) into Tritium to boost production volumes, product development and continue its global expansion. At Tritium’s Nasdaq debut the St Baker stake was valued at about $380 million.
The company has yet to respond, but the AFR report indicated that the company was considering closing its Australian operations although it was hopeful of finding the necessary funding.
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The company reported record revenue of $112 million for the 2023 first half and had $29 million in cash.
The Palaszczuk Government has provided equity before. It took a 10 per cent stake in the revived Virgin which has paid off. It also took a stake at the IPO of Dalrymple Bay Infrastructure, which owns a central Queensland coal port.
