novonix (ASX:NVX) has completed a full institutional underwriting of $44.4 million and issued approximately 74.1 million new shares at a price of $0.60 per share. The offering was targeted at institutional and sophisticated investors, had strong support from existing shareholders and welcomed several new investors.

“The support from our institutional shareholders and major backer Phillips 66 underscores our confidence in Novonix’s growth strategy,” said Chairman Robert J. Nutter. CEO Dr. Chris Burns added, “This funding will support the expansion of our anode material production and enable us to access up to US$100 million in Department of Energy grants.”

The capital raise comes on the back of supply deals with Volkswagen’s Powerco and global automotive group Stellantis.

The proceeds will fund the expansion of production capacity at Novonix’s Riverside facility to 3,000 tonnes per year in 2025. In addition, approximately 12.8 million shares will be issued to majority shareholder Phillips 66 in a conditional offering, pending shareholder approval at a scheduled special general meeting. For January 22, 2025.

The company also announced a share purchase plan (SPP) offering $5 million from eligible shareholders in Australia and New Zealand at a share price of $0.60. However, SPPs are subject to regulatory exemptions or shareholder approval.

Novonix produces high-performance synthetic graphite for lithium-ion batteries and develops patented technologies for the electric vehicle and energy storage markets.

The stock is now down 17.1% to 80 cents.