NOVONIX, a battery materials and technology provider, entered into a definitive funding agreement with Yorkville Advisors Global (Yorkville) to secure up to $95 million. In exchange, the company is expected to issue up to $100 million of its unsecured convertible debentures to Yorkville under the terms of a multi-tranche funding agreement.
These convertible notes are expected to provide the company with additional capital to continue building its Riverside facility in Chattanooga, Tennessee. Debentures issued to Yorkville under the funding agreement are convertible into fully paid ordinary shares of NOVONIX.
According to the agreement, Yorkville has agreed to up to $57 million under the first two tranches of the funding agreement. The first tranche of convertible debentures, worth $24.5 million, will be issued and fully drawn down upfront, raising $23,275,000, and does not require shareholder approval.
The second tranche of convertible debentures worth $35.5 million will be raised up to an additional $33,725,000 through one or more drawdowns.
“NOVONIX will begin shipping commercial-grade synthetic graphite from Riverside later this year, with mass production starting next year for our lead customer, Panasonic. The start of commercial production will mark a critical milestone for the Company as we continue to establish and build a domestic supply chain for synthetic graphite in North America,” said Mike O’Kronley, CEO of NOVONIX.
An additional tranche of up to $40,000,000 convertible debentures from the company, subject to shareholder approval at the EGM. Funding may only be drawn down under this additional tranche by mutual agreement between NOVONIX and Yorkville.
According to Mercom’s Q1 2025 Funding and M&A Report for Energy Storage, announced debt and public market financing for Energy Storage companies in Q1 2025 decreased 90% YoY, with $1.1 billion in 13 deals compared to $10.5 billion in six deals in Q1 2024.
In March, Lithium Americas, a mineral and mining company, announced a $250 million investment from fund entities managed by Orion Resource Partners (Orion), an investment firm specializing in metals and materials.
