NOVONIX and Lithium Energy to Launch Axon Graphite with IPO Ambitions

NOVONIX and Lithium Energy to Launch Axon Graphite with IPO Ambitions

In an ambitious move set to reshape the landscape of the battery materials industry, NOVONIX Limited and Lithium Energy Limited have unveiled plans to consolidate their natural graphite interests into Axon Graphite Limited. The newly formed entity is poised to make its debut on the Australian Securities Exchange (ASX) through an Initial Public Offering (IPO), marking a strategic pivot towards capitalizing on the burgeoning demand for natural flake graphite, a crucial component in electric vehicle (EV) and energy storage systems (ESS) batteries.

Strategic Consolidation: NOVONIX and Lithium Energy to merge their natural graphite projects into Axon Graphite Limited, aiming for public listing.

IPO Launch: Axon plans an IPO to raise between $15 million and $25 million, with shares priced at $0. 20 each.

Ownership Structure: Post-IPO, NOVONIX and Lithium Energy will each retain up to 28. 57% in Axon, ensuring significant influence in its future direction.

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Market Impact: The merger creates a significant player in the natural flake graphite sector, poised to cater to the EV and ESS markets.

Shareholder Benefits: Eligible shareholders of NOVONIX and Lithium Energy are to be given priority in the IPO, potentially realising value from their investments.

A Strategic Merger for Global Dominance

NOVONIX Limited, a leader in battery materials and technology, alongside Lithium Energy Limited, have entered into a definitive agreement to integrate their graphite exploration ventures into Axon Graphite Limited. This strategic merger is expected to form a world-class, large-scale natural flake graphite project, setting the stage for Axon's public listing on the ASX.

IPO Strategy and Financials

Axon Graphite plans to initiate an IPO to raise funds between $15 million and $25 million, leveraging a share price of $0. 20. This financial move aims to fuel the advancement of Axon’s graphite projects and a vertically integrated Spherical Purified Graphite Battery Anode Material manufacturing facility in Queensland. The proposed IPO will offer priority to NOVONIX's and LEL's eligible shareholders, alongside a public offer to attract new investors.

Enhancing Value and Scale

This merger not only signifies a leap towards realizing shareholder value but also enhances the scale and economic viability of the combined graphite resources. By consolidating NOVONIX's high-grade natural flake graphite deposit at Mt. Dromedary with LEL's Burke and Corella projects, the partnership is set to catapult Axon into a leading position within the global battery anode material market.

Industry and Environmental Impact

The creation of Axon Graphite comes at a crucial time, with the electric vehicle and energy storage systems battery markets experiencing significant growth. The combined assets of NOVONIX and LEL under Axon are expected to provide a substantial natural graphite mine and business, aimed at advancing the production of highly refined natural graphite for EVs and ESS. This move is not just a business strategy but a step towards supporting a cleaner energy future through sustainable mining and manufacturing practices.

Leadership and Future Prospects

The announcement has been met with optimism from the leaders of both contributing companies. Dr. Chris Burns, CEO of NOVONIX, and William Johnson, Executive Chairman of LEL, have expressed their enthusiasm for the synergies and economies of scale that the merger and subsequent IPO are expected to generate. With NOVONIX's established position within the global battery industry and LEL's high-quality natural graphite deposits, Axon Graphite is poised to become a formidable player in the market.

The strategic decision by NOVONIX and Lithium Energy to merge their graphite exploration interests into Axon Graphite and pursue an IPO represents a forward-thinking approach to capitalizing on the growing demand for battery materials. By pooling their resources and expertise, the companies are not only aiming to enhance shareholder value but also to contribute to the global transition towards cleaner energy solutions.

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