Lithium Australia raising up to $6 million to fund revenue growth from battery and energy solutions

Lithium Australia NL (ASX:LIT) has raised $4 million in a heavily oversubscribed placement and intends to raise up to $2 million in a subsequent share purchase plan (SPP). Funds from the capital raising will be used to accelerate revenue growth for the company's Envirostream Australia Pty Ltd battery recycling and Soluna Australia Pty Ltd renewable energy storage system subsidiaries. Firm commitments were received from institutions and sophisticated and professional investors for the placement resulting in the issue of 75,471,698 fully paid ordinary shares at $5.3 cents per share. "Endorsement" of company Lithium Australia MD Adrian Griffin said: "Strong demand for the placement is an endorsement of the quality of an investment in the company. "Our diversified exposure to the fast-growing battery industry makes this investment opportunity unique.  "Lithium Australia has significant intellectual property in terms of battery technology and a sound understanding of the entire battery supply chain.  "The company’s efforts have been recognised by the Australian Federal Government through the award of a number of substantial research grants that will progress the nation’s advanced battery capabilities." Share purchase plan Lithium Australia has launched an SPP that allows eligible shareholders to subscribe for equity on terms identical to those for the placement to sophisticated and professional investors. The SPP offers registered shareholders with an address in Australia or New Zealand as at 7.00pm WST on August 11 an entitlement of fully paid ordinary shares in the capital of the company. Targeting an additional equity issue of $2 million, the SPP gives eligible shareholders the right to subscribe for up to $30,000 worth of shares in the company free of brokerage and fees. Lithium Australia reserves the right to scale back applications under the SPP if demand exceeds $2 million, and to close the SPP early. Griffin added: “Together the placement and SPP will allow Lithium Australia to fast-track the growth of Soluna Australia and Envirostream Australia, both of which anticipate significant revenue growth this financial year.” Application of funds Capital raising funds raised under the placement and SPP will be used to: Commercialise Envirostream Australia’s battery recycling business; Enhance Envirostream Australia’s marketing and collection network; Marketing costs for Soluna Australia’s renewable-energy storage systems; and Additional working capital for the company. VWAP discount  New shares will be issued at the same price as those for the placement for each new share, which represents a 16% discount to the volume-weighted average trading price (VWAP) of company shares traded on the ASX during the five days immediately prior to the release, in accordance with ASX Listing Rules. BW Equities Pty Ltd acted as lead manager to the placement with shares to be issued in accordance with the ASX Listing Rules, under the company’s existing 7.1 and 7.1A capacities.