Allens has advised ASX-listed battery technology company NOVONIX Limited on the issue of US$30 million of unsecured convertible notes to LG Energy Solution (LGES).
Part of a broader collaboration between NOVONIX and LGES, the convertible note issue coincides with the parties entering into a joint development agreement for the research and development of artificial graphite anode material for lithium-ion batteries. Upon successful completion of certain work under that joint development agreement, NOVONIX and LGES will enter into a separate purchase agreement under which LGES will have the option to purchase anode material from NOVONIX.
'We congratulate NOVONIX on its partnership with LG Energy Solution and look forward to seeing the innovation it will drive in the lithium-ion battery industry,' said lead Partner Chelsey Drake.
'Along with heightened investment activity in critical minerals, we're seeing an increase in the use of convertible note structures by listed issuers for fundraising.
'As competition for critical mineral supply intensifies in step with the energy transition, we're also seeing more and more critical minerals investments accompanied by a development or offtake agreement to secure supply.'
Allens legal team
M&A and capital markets
Chelsey Drake (lead Partner), Aidan Shanley (Senior Associate), Nicholas Dudurovic (Senior Associate)