Share Purchase Plan following contract with Samsung SDI
Brisbane, Dec 16, 2019 AEST (ABN Newswire) - NOVONIX Limited (
ASX:NVX) (GC3:FRA) advises that, following its conditional contract announced on 9 December 2006 with international battery manufacturer, Samsung SDI, it is undertaking a Share Purchase Plan (the Plan or SPP). The issue price under the SPP will be $0.51 per share, which is a 20% discount to the Volume Weighted Average Market Price (VWAP) over the last 5 days on which sales of shares are recorded prior to the announcement of the SPP to ASX on 16 December 2019.
Under the SPP, eligible shareholders, being those with registered address in Australia or New Zealand on 13 December 2019 (Record Date) (Eligible Shareholders), will be given the opportunity to purchase up to $30,000 worth of new shares in the Company at a discount and without incurring brokerage or transaction costs. Eligible Shareholders will be able to participate in the SPP by subscribing for shares in multiples of $5,000, subject to a scale back at the Directors' discretion and the Listing Rules.
The Company may, in its absolute discretion, scale back applications and the SPP is not underwritten. Funds raised from the SPP will be used as follows:
a) Approximately 70% of the proceeds from the SPP will be directed toward working capital to help fulfil the Samsung SDI contract (as announced to ASX on 9 December 2019) and assist the Company to build inventories ahead of first deliveries forecast for October 2020; and
b) Approximately 30% of the proceeds from the SPP will be directed towards continued R&D to improve manufacturing processes and products.
An offer booklet for the SPP will be mailed to eligible shareholders on or about 17 December 2019 and the SPP offer will close on 24 December 2019.
In conjunction with the SPP, the Company's directors have agreed to provide the Company with short term working capital funding of collectively up to $2,000,000. The funding will bring forward the availability of funding under the SPP and allow the Company to commence building inventories for Samsung SDI and continue R&D to improve manufacturing processes and products. The loans are unsecured, earn interest of 8% pa from the date of drawdown calculated on a daily basis, and are repayable upon the earlier of the Company raising sufficient funds through the SPP and 6 months. The loans may be only partially drawn-down, at the discretion of the Company.
To view the SPP Timetable, please visit:
https://abnnewswire.net/lnk/899PRCM2
About NOVONIX Limited
NOVONIX Limited (ASX:NVX) (FRA:GC3) (OTCMKTS:NVNXF) is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the USA and Canada and sales in more than 14 countries. NOVONIX's mission is to support the global deployment of lithium-ion battery technologies for a cleaner energy future.
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