Lithium Australia’s move into the energy storage market has been backed by New York-based institutional funds manager The Lind Partners, via a $6.3 million funding agreement.
Lithium Australia’s move into the energy storage market has been backed by New York-based institutional funds manager The Lind Partners, via a $6.3 million funding agreement.
The WA-based batteries and battery materials business announced to the ASX that Lind would make an initial investment of $3 million, which will go towards growing the recently-announced Soluna Australia business, battery sales, recycling growth and boost general working capital.
Earlier this month, Lithium Australia announced the launch of Soluna via a joint venture with Chinese company DLG Group, with the company to sell lithium-ion battery and energy storage products across Australia.
Lithium Australia said Lind’s initial investment would take place via a secured convertible security, with a conversion price to be the lower of 5.5 cents per share or 92.5 per cent of Lithium Australia’s volume weighted average price over a three day period, and a $100,000 share placement.
Lind has also agreed to subscribe for up to $3.4 million worth of Lithium Australia shares over the next 12 months, on the same terms as the convertible security.
Lithium Australia managing director Adrian Griffin said the funding agreement would allow the company to continue to diversify across the batteries and battery minerals sector.
Lithium Australia has several business units including Soluna, Envirostream Australia which has developed a patented lithium-ion recycling process and VPSC, a battery cathode manufacturing facility located in Brisbane.
The company also holds several lithium exploration licenses in Western Australia, while a technology alliance with Pilbara Minerals aims to produce lithium carbonate or hydroxide using Lithium Australia's SiLeach process from spodumene concentrates mined from Pilbara Minerals' Pilgangoora mine.
Lind managing director Jeff Easton said the funds manager had been following Lithium Australia’s evolution since 2013.
“In that time we have seen Lithium Australia evolve from explorer to a diversified battery and battery minerals company with three distinct complementary business units with excellent commercial potential,” Mr Easton said.
“We are thrilled to invest in Lithium Australia and its management team to support the strategic plan of expanding operations into a diversified battery company.”
In early trade this morning Lithium Australia’s stock had risen by 38 per cent, trading at 2.1 cents at 9:30AM (WST).
