Lithex to make tech move

Subiaco-based Lithex Resources will make a second attempt at a backdoor listing, announcing plans to acquire an Israel-based battery technology company in a deal worth $28.7 million.

Lithex, which last year backed out of plans to buy Perth entrepreneur Zhenya Tsvetnenko’s internet marketing business Mpire Media, plans to buy Israeli company Voltape, which is developing efficient and sustainable lithium-ion batteries.

Voltape’s battery technology focuses on short recharge times, with the goal of reducing the charge time of smartphones down to just six minutes, while electric vehicles could take 10-15 minutes to fully charge.

The lifetime charge cycle of the batteries are also designed to endure up to 20 times more than today’s batteries.

Under the terms of the deal, Lithex will wholly acquire Voltape in exchange for 485.9 million shares which, at the company’s last trading price of 5.9 cents a share, is equal to $28.7 million.

Lithex will also issue 60 million performance rights over a certain period of time.

In order to comply with ASX relisting rules, Lithex will be required to undertake a capital raising, the details of which are yet to be confirmed.

If the deal is successful, Lithex will change its name to UltraCharge Limited, with all directors of the company to resign except for David Wheeler.

The outgoing directors will be replaced with Voltape nominees.

The company hopes to begin trading under its new name and business model by October.

Lithex shares were unchanged at 5.9 cents each at 1:30pm.