Novonix Limited entered into Unsecured Convertible Note Agreement for the private placement of redeemable unsecured convertible notes for gross proceeds of $30 million (AUD 45.05 million) on June 7, 2023. The transaction will include participation from new investor, LG Energy Solution, Ltd. The notes will have 4% coupon rate and a maturity date of June 7, 2028. The convertible notes will mandatorily convert into ordinary shares upon acceptance of the first purchase order under the purchase agreement, although the investor may elect to convert some or all of the notes prior to such time.
No interest would be payable on the notes in these circumstances. The convertible notes may be redeemed or converted on the maturity date, in which case interest is payable in cash or ?in-kind? (in the case of conversion).
The convertible notes will be issued with a conversion price of AUD 1.60 per common share.