The stock valuation of NOVONIX Limited (NASDAQ: NVX) saw a significant increase during the last trading session, with a notable increase of 10.71% and a closing price of $3.10. This significant increase in NVX’s stock price comes before the company will soon provide a business update.
Important members of NOVONIX’s management team will be present at an investment event that will take place the following week. The CEO of NOVONIX, Dr. Chris Burns, will be giving prepared remarks during a webcast addressing the business update for the quarter that concluded on March 31, 2024. The presentation materials and webcast link will be available starting at 6:30 p.m. EDT on Tuesday, April 16.
Furthermore, NOVONIX and Axon Graphite Limited (“Axon”), a division of Lithium Energy Limited (ASX: LEL), have finalized a deal. This deal will result in the divestiture of the Mount Dromedary natural graphite exploration interests to Axon by NVX’s wholly-owned subsidiary, MD South Tenements Pty Ltd. LEL will contribute its stake in the Burke and Corella graphite projects to Axon as part of the agreement.
In exchange for this transaction, NOVONIX will receive shares in Axon, with the intention of both parties listing them on the Australian Securities Exchange (“ASX”). The finalization of the transaction is contingent upon the completion of due diligence inquiries by the parties, the conclusion of Axon’s proposed initial public offering (“IPO”), and the approval for Axon’s admission to the ASX.
Axon aims to conduct its IPO to raise a minimum of $15 million and up to $25 million at an issue price of $0.20 per share. A priority offer for qualified NOVONIX and LEL shareholders will be part of the planned IPO, in addition to a public offering for new investors. The Axon prospectus for the proposed IPO is anticipated to be released within approximately 6 to 8 weeks.
Upon the consummation of the proposed IPO, both NOVONIX and LEL are expected to retain up to 28.57% of the shares in Axon, with the remaining shares to be held by investors in the IPO. The shares held by NVX and LEL are likely to be subject to escrow for a duration of 24 months.
