Highlights

  • NOVONIX made a second amortisation payment of US$7,000,000 to YA II PN, Ltd, an affiliate of Yorkville Advisors Global.
  • Convertible debentures with a face value equal to the payment were redeemed, reducing the amount outstanding to US$21,000,000.
  • An amortisation event occurs if the ASX daily VWAP is below the Floor Price of A$0.12 for the period specified in the agreement.
  • The payment was funded from the company’s existing cash reserves.

NOVONIX Limited (NASDAQ:NVX) (ASX:NVX) has announced it made a second amortisation payment of US$7 million under its funding agreement with YA II PN, Ltd, an affiliate of Yorkville Advisors Global. The payment follows an amortisation event under the convertible debenture agreement, which allows for funding of up to US$100 million in aggregate face value.

The Second Amortisation Payment

The release refers to earlier announcements dated 24 July 2025 and 10 September 2026 about the funding agreement. Under the agreement, if the daily volume weighted average price of NOVONIX shares on ASX is below the Floor Price of A$0.12 for the specified period, an amortisation event occurs.

NOVONIX has now paid US$7,000,000 to the investor. Convertible debentures with an equal face value have been redeemed, and the amount outstanding has reduced to US$21,000,000.

Ongoing Amortisation Obligations

If the amortisation event continues, the agreement provides for further payments on a rolling 30-day basis. Each is equal to 20% of the Amount Outstanding at the time of the amortisation event, until the event ceases or the Amount Outstanding is repaid in full.

The company says it will continue to monitor its share price against the Floor Price and keep the market informed under its continuous disclosure obligations.

Funding and Company Background

The second payment was funded from NOVONIX’s existing cash reserves. The announcement does not state the company’s remaining cash balance.

NOVONIX is headquartered in Chattanooga, Tennessee, and produces synthetic graphite anode materials for lithium-ion batteries, serving energy storage, electric vehicle and industrial markets. It describes its aim as building a resilient North American battery materials supply chain.

Key Takeaways

NOVONIX’s debenture balance has fallen to US$21 million after the second US$7 million payment, but further payments are possible if the share price stays below the A$0.12 Floor Price. The amount and timing of any further payments depend on how the amortisation event develops. This article is general information only and is not financial advice.