Funding To Help Accelerate Envirostream Activities
Lithium Australia NL (ASX: LIT) has advised that its Share Purchase Plan (SPP) has closed with applications for A$4.5 million.
Monies raised will be used to:
- commercialise the battery recycling business of company subsidiary Envirostream;
- facilitate Envirostream’s marketing and its battery collection network;
- cover the marketing costs of company subsidiary Soluna Australia Pty Ltd, which sells renewable-energy battery storage systems; and
- provide the company with additional working capital.
Lithium Australia Managing Director, Adrian Griffin, said the company’s board considers existing shareholders will benefit from the pay-down of the current Lind convertible note, to be effected by the issue of a buy-back notice. The funds required will be covered by contributions in excess of the initial A$2 million target.
“We are very pleased that our shareholders backed the company’s vision of sustainability in the energy metals space,” Mr Griffin said.
“The additional funds raised will allow all debt to be retired, improving the company’s balance sheet and accelerating the expansion of Envirostream, our battery recycling subsidiary. “This comes on the back of the Australian Consumer and Competition Commission approving a national battery stewardship scheme to encourage battery recycling, which will provide greater opportunities for Envirostream.”