Evion Group NL (ASX:EVG, OTC:EVIGF) is seeking to raise up to $2.7 million via a rights issue to existing supportive shareholders.
The raise will fund the company’s share of capital needed to double the graphite production profile of the operating Panthera JV in India; fund the continued development of its projects in Madagascar; and support studies for the development of a battery anode material plant.
This raise comes as Evion enters an “exciting new phase” of production growth in India and completes the necessary permits in Madagascar to be granted mine development licences.
"The success of our Indian JV production facility has attracted a significant amount of global interest and we will now move into an expansion phase to capitalise on the growing demand for expandable graphite to fuel the growing EV, infrastructure and tactical applications industry,” Evion managing director David Round said.
“As one of the only graphite producers listed on the ASX and with strong operating margins demonstrated by production to date, we see significant cashflow for investors from doubling the production capacity at the Panthera JV in India.
“Additionally, we have made great progress in the last six months as we near completion of our community development plan in Madagascar for our flagship Maniry Project.
“This near-term approvals milestone is expected to be the impetus for Evion to be granted a mine development licence and then move on to the funding and development planning phase."
The rights issue
The 1-for-3 rights issue seeking to raise up to $2.7 million is priced at $0.023 per share, representing a discount of 20.7% to the last traded price of 0.029; and 28.5% to the 30-day VWAP of $0.032.
Offered to existing shareholders, the rights issue allows eligible shareholders to maintain their pro-rata shareholding in the company.
The company believes a discounted pro-rata offer to shareholders is the most effective manner to fund its continued growth and development, in light of the difficult equity market for the graphite sector and EV metals sectors more generally.
“We believe this rights issue is the best way to fund our development and growth and we look forward to the ongoing support from our shareholders,” said Round.
The company says a separate bonus loyalty option offer to shareholders will be considered by the board following the completion of the rights Issue.