NOVONIX Announces Completion of Due Diligence for Combination of Natural Graphite Interests into Axon Graphite
NOVONIX (NASDAQ: NVX, ASX: NVX), a leading battery materials and technology company, announced the successful completion of due diligence for a strategic merger with Lithium Energy 's (ASX: LEL) natural graphite interests. The merger will create Axon Graphite , combining NOVONIX's Mount Dromedary graphite exploration and LEL's Burke and Corella graphite projects. NOVONIX will receive shares in Axon, which is planned to be listed on the Australian Securities Exchange (ASX). The transaction is contingent on Axon's initial public offering (IPO) and its ASX listing approval. This announcement was authorized by NOVONIX Chairman, Admiral Robert J. Natter, USN Ret.
- Successful completion of due diligence for merger with Lithium Energy
- Creation of Axon Graphite , combining multiple graphite projects.
- NOVONIX to gain shares in Axon Graphite
- Potential listing of Axon on the Australian Securities Exchange (ASX).
- Transaction contingent on successful IPO and ASX listing approval for Axon.
- Potential shareholder dilution due to issuance of new Axon shares.
Insights
From a financial standpoint, the news about NOVONIX's divestment of its graphite exploration interests into Axon Graphite Limited is quite strategic. By combining assets with Lithium Energy Limited, NOVONIX not only reduces its direct involvement in the exploration phase but also potentially benefits from the synergies of a specialized company focused on natural graphite. This move could streamline NOVONIX's operations, allowing it to focus more on its core competencies in battery materials and technology. Additionally, receiving shares in Axon Graphite Limited provides NOVONIX with a stake in a potentially high-growth company without the burden of direct operational costs. However, the actual financial benefits will largely depend on the success of Axon's IPO and its subsequent performance on the ASX. Retail investors should keep an eye on Axon's IPO progress and the market's reception to gauge the potential uplift in NOVONIX's share value.
From a market perspective, the formation of Axon Graphite Limited and its planned IPO could create a new player in the natural graphite market, which is vital for battery production. This consolidation might lead to more efficient development of graphite resources, potentially lowering costs and improving supply stability. For NOVONIX, this move could enhance its positioning in the battery materials market by indirectly controlling a significant graphite supply. Investors should note that the success of this venture will be influenced by global demand for battery materials, particularly in the EV and renewable energy sectors. The competitive landscape should also be monitored, as any shifts could impact Axon's market position and, consequently, NOVONIX's investment.
Analyzing the legal aspects, the completion of due diligence indicates that both NOVONIX and Lithium Energy Limited are satisfied with the transaction's terms and conditions. However, the deal's success hinges on the approval of Axon's IPO and its admission to the ASX. Regulatory hurdles and compliance with ASX listing rules can significantly impact the timeline and success of this transaction. Investors should be aware that delays or issues in the IPO process could affect NOVONIX’s strategic plans and financial projections. It’s important to monitor these regulatory developments as they unfold.
BRISBANE, Australia, May 16, 2024 (GLOBE NEWSWIRE) -- NOVONIX Limited (NASDAQ: NVX, ASX: NVX) (“NOVONIX”), a leading battery materials and technology company, today announced that due diligence has been satisfactorily completed for both NOVONIX and Lithium Energy Limited (ASX: LEL)(“LEL”) to contribute their natural graphite exploration interests into a new company, Axon Graphite Limited (“Axon”).
As previously announced, NOVONIX has agreed to divest MD South Tenements Pty Ltd, its wholly owned subsidiary that holds the Mount Dromedary natural graphite exploration interests, to Axon Graphite Limited, a subsidiary of LEL. LEL will contribute its interest in its Burke and Corella graphite projects to Axon pursuant to the agreement. As consideration for the transaction, NOVONIX will receive shares in Axon, which the parties intend to list on the Australian Securities Exchange (“ASX”). The transaction is subject to the completion of the proposed initial public offering (“IPO”) of Axon, and receipt of approval for the admission of Axon to the ASX.
This announcement has been authorized for release by NOVONIX Chairman, Admiral Robert J. Natter, USN Ret.
About NOVONIX
NOVONIX is a leading battery technology company revolutionizing the global lithium-ion battery industry with innovative, sustainable technologies, high-performance materials, and more efficient production methods. The company manufactures industry-leading battery cell testing equipment, is growing its high-performance synthetic graphite anode material manufacturing operations, and has developed an all-dry, zero-waste cathode synthesis process. Through advanced R&D capabilities, proprietary technology, strategic partnerships, and as a leading North American supplier of battery-grade synthetic graphite, NOVONIX has gained a prominent position in the electric vehicle and energy storage systems battery industry and is powering a cleaner energy future. To learn more, visit us at www.novonixgroup.com or on LinkedIn and X.
For NOVONIX Limited
Scott Espenshade, ir@novonixgroup.com (investors)
Valerie Malone, media@novonixgroup.com (media)
Cautionary Note Regarding Forward-Looking Statements
This communication contains forward-looking statements about the Company and the industry in which we operate. Forward-looking statements can generally be identified by use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” or other similar expressions. Examples of forward-looking statements in this communication include statements we make regarding the proposed transaction with Lithium Energy Limited and the proposed Axon Graphite Limited IPO and ASX listing, We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Such forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could affect our business and results are included in our filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company's Form 20-F. Copies of these filings may be obtained by visiting our Investor Relations website at www.novonixgroup.com or the SEC's website at www.sec.gov.
Forward-looking statements are not guarantees of future performance or outcomes, and actual performance and outcomes may differ materially from those made in or suggested by the forward-looking statements contained in this communication. Accordingly, you should not place undue reliance on forward-looking statements. Any forward-looking statement in this communication is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time, whether as a result of new information, future developments or otherwise, except as required by law.
In particular, we caution that the proposed Axon IPO and ASX listing may be subject to final board and regulatory approvals and is dependent on market conditions. We caution that the admission of Axon to the official list of the ASX is conditional on and subject to the ASX’s satisfaction that Axon has a structure and operations suitable for a listed entity at the ASX’s absolute discretion.
In accordance with section 734(5)(b) of the Corporations Act 2001 (Cth) (Corporations Act), it is noted that:
- Axon will be the offeror of fully paid ordinary shares under the IPO;
- a prospectus will be issued by Axon in accordance with Part 6.2 of the Corporations Act when the IPO shares are offered;
- a person should consider the prospectus in deciding whether to apply for IPO shares; and
- anyone who wants to apply for the IPO will need to complete an application form that will be in or will accompany the prospectus.
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