Key Highlights

  • NOVONIX made a second amortisation payment of US$7,000,000 to YA II PN, Ltd.
  • Convertible debentures with a face value equal to the payment were redeemed, leaving US$21,000,000 owed under the agreement.
  • The amortisation event is triggered when the daily VWAP on ASX falls below the Floor Price of A$0.12 for the specified period.
  • The payment was funded from NOVONIX's existing cash reserves.

NOVONIX Limited (ASX:NVX) has made a second amortisation payment of US$7,000,000 to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, LLC, under its convertible debenture funding agreement. The company disclosed the payment in an ASX announcement dated 22 October 2026 from Chattanooga, Tennessee. NOVONIX is quoted on both NASDAQ and the ASX under the ticker NVX.

Convertible debentures with an aggregate face value equal to the payment have been redeemed. As a result, the balance owed under the agreement has fallen correspondingly to US$21,000,000.

The Funding Agreement

The announcement refers back to earlier disclosures dated 24 July 2025 and 10 September 2026 concerning the arrangement with the investor. Under the agreement, funding is provided through the issue of convertible debentures with a maximum aggregate face value of up to US$100,000,000. The funding was entered into with the investor on terms the company has previously disclosed to the market.

The agreement contains an amortisation mechanism tied to the company's share price. If the daily volume weighted average price, or VWAP, of NOVONIX shares on the ASX is lower than the Floor Price of A$0.12 for the period specified in the agreement, that constitutes an amortisation event.

The payment announced on 22 October is described as the second made under this mechanism. The announcement does not restate the size or date of the first payment, which sits in the earlier disclosures it cites, and it does not say when the second fell due.

How Further Payments Are Calculated

The company set out the terms that apply if the amortisation event continues. In that case, the agreement provides for further amortisation payments on a rolling 30-day basis. Each payment is equal to 20% of the amount owed under the agreement at the time of the amortisation event as that figure is defined in the agreement.

Those obligations run until the earlier of two outcomes: the amortisation event ceasing, or the amount owed being repaid in full. The announcement does not quantify any future payment, and it does not state what the balance was at the time the event began. Because the percentage is applied to the balance at that point, the formula is defined by reference to the agreement rather than to the US$21,000,000 now remaining.

NOVONIX said it will continue to monitor its share price against the Floor Price. It also committed to keeping the market informed in accordance with its continuous disclosure obligations under the ASX Listing Rules.

The announcement also lists the subject matter of its forward-looking statements, which include future amortisation payments and amortisation events as well as the company's market position and its efforts to develop a North American battery materials supply chain.

Source of Funds and Company Profile

The second amortisation payment was funded from the company's existing cash reserves. The announcement does not give the cash balance before or after the payment, so the effect on liquidity cannot be measured from this document alone.

NOVONIX describes itself as building a North American battery materials supply chain to reduce risk and support United States energy independence. Headquartered in Chattanooga, Tennessee, it produces synthetic graphite anode materials for lithium-ion batteries. Its stated end markets are energy storage, electric vehicles and industrial applications. The company's head office is at 1029 West 19th Street in Chattanooga, and its annual report is filed with the US Securities and Exchange Commission on Form 20-F.

The company says it is using proprietary technologies and expanding manufacturing capacity to scale these materials. The announcement was authorised for release by Chairman Admiral Robert J. Natter, USN Ret., and investor and media contacts were provided at NOVONIX.

Where the Numbers Leave the Company

The reported figures are narrow but specific. A payment of US$7,000,000 was made in cash, debentures of equal face value were redeemed, and the balance owed under the agreement now stands at US$21,000,000 against a facility whose maximum aggregate face value is US$100,000,000.

The payment followed an amortisation event linked to the A$0.12 Floor Price. Under the agreement's terms, further payments of 20% of the amount owed at the time of the event would apply on a rolling 30-day basis for as long as the event continues. The company has said it will update the market in line with its continuous disclosure obligations.