Livium Ltd has received strong validation of plans to commercialise its lithium ferro phosphate (LFP) production technology, securing firm commitments from sophisticated and professional investors for a A$4.5 million share placement.
The placement – which enjoyed strong demand – follows a binding agreement between LIT’s wholly-owned subsidiary VSPC and the Australian Renewable Energy Agency (ARENA), which will offer a grant of up to A$30 million for the construction of an LFP demonstration plant.
In light of the new funding streams, Livium has also opted to conclude its strategic placement agreement with Lind Global Fund II, an entity managed by The Lind Partners.
Funding to support commercialisation
“We are delighted by the strong support received for this capital raising. The mix of existing shareholders and new institutional investors demonstrates the growing awareness and support of our revenue-generating recycling business and patented technologies,” Livium CEO and managing director Simon Linge said.
“The grant from ARENA represents a significant step forward for our battery materials commercialisation with funds raised from the placement to be used towards advancing the pathways for the Australian LFP Demonstration Plant and to grow battery recycling volumes."
Leading Melbourne-boutique, Peak Asset Management led the placement process
“I would like to thank Peak and their clients for supporting the raise and look forward to working with them to grow the company for the benefit of all shareholders,” Linde said.
The ARENA grant will go toward the construction and working operations of the LFP demonstration plant, which will be operated for about two years – LIT expects to secure binding offtake contracts during that period.
Livium will be able to draw on the grant once it has secured full funding for the plant, which the company expects to achieve with a strategic investment into VSPC.
Lind Facility conclusion
Under the terms of the Lind Facility, Livium will repay the value of the pre-payment of $2.16 million to Lind, together with exit fees.
Lind retains an option to subscribe for one-third of the repayment in shares, which will be partially offset by the advanced shares previously issued to Lind under the facility, with an expected (but as yet undetermined) value of up to $650,000.
“The funding from Lind has allowed the completion of certain significant milestones, including the ARENA grant funding,” Linge said.
“Lind has a long-standing relationship with the company, and we are thankful to Jeff and the Lind team for their continued support.”