LITHIUM Australia has secured up to $6.3m funding from New York-based institutional fund manager, The Lind Global Macro Fund, under a convertible security and share purchase funding agreement.
The initial $3m investment and a $100,000 share placement will help fund growth of the Soluna Australia battery business, commercialisation of the company’s cathode business (owned by its subsidiary VSPC) and growth of the company’s battery recycling business (owned by its subsidiary Envirostream Australia) and costs of the funding, as well as general working capital.
Lithium Australia also has the option to repay the convertible security in cash, subject to Lind Partners’ buyback conversion rights for up to 30pc of the outstanding Face Value.
Lind managing director Jeff Easton said the fund has been following the development of Lithium Australia and its progressing in lithium recycling, extraction and processing since 2013.
“In that time, we have seen Lithium Australia evolve from an explorer to a diversified battery and battery minerals Company with three distinct complimentary 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.”
Lithium Australia managing director Adrian Griffin is equally thrilled.
“The Lind Partners has been a long-time supporter of Lithium Australia and its directors, and we are pleased to continue our relationship,” Mr Griffin said.
“During 2019, Lithium Australia has made a significant transition towards what is a more diversified, revenue producing business in one of the world’s fastest growing sectors – batteries and battery minerals.
“This agreement will improve the company’s balance sheet, allowing us to grow our business in ways that are environmentally responsible and sustainable.”
The initial funding commitment will be provided within seven days.
