NOVONIX Limited announced the execution of definitive transaction agreements and closing of its investment and supply agreements with KORE Power Inc. to advance and strengthen the domestic lithium-ion battery supply chain. The execution of the binding and definitive transaction agreements, including a Securities Purchase Agreement and Supply Agreement, closed in accordance with the terms set in a non-binding letter of intent entered into between NOVONIX and KORE Power, as announced by NOVONIX on January 24, 2022. Under the terms of a Securities Purchase Agreement entered into between NOVONIX and KORE, NOVONIX has purchased 3,333,333 shares of KORE Power common stock at an issue price of USD 7.50 per share, representing approximately 5% of the common equity of KORE Power.
The aggregate offering price for the Shares of USD 25,000,000 has been paid in a combination of 50% cash, funded through NOVONIX's existing cash holdings, and 50% through the issue of 1,974,723 of ordinary shares in NOVONIX calculated at a price using a 5% discount to the 20-day VWAP ending three trading days prior to closing date. KORE Power has agreed to the application of a holding lock under the listing rules of the ASX until such time as the Novonix Shares have been registered under the United States Securities Act of 1933 or may otherwise be sold in the United States. As part of the transaction, NOVONIX and KORE Power have also entered into a binding Supply Agreement, under which NOVONIX will become the exclusive supplier to KORE Power's U.S. large scale battery cell manufacturing facility.
NOVONIX will begin supplying graphite anode material at a rate of 3,000 tonnes per annum beginning in 2024, and ramping up to approximately 12,000 tpa in 2027, subject to customer requirement. The Supply Agreement is for an initial term of five years, with automatic renewal for a subsequent five-year term. This is NOVONIX's first significant volume offtake agreement as the company expands its production capacity at the new Riverside facility towards the target of 10,000 tpa of production capacity in 2023.