Iondrive Ltd (ASX:ION) has completed a $2 million placement to advance its battery recycling technology.
The placement to sophisticated and professional investors at $0.009 per share had cornerstone participation from Iondrive’s two largest shareholders, Strata Investment Holdings PLC and Ilwella Pty Ltd, underlining shareholder support for the recycling technology.
Participation by the company's board and management also totalled $260,000.
Strong investor support for the placement required the company to scale applications to manage demand.
Funds to support battery recycling PFS
Iondrive intends to use the proceeds of the placement to fund the completion of the battery recycling pre-feasibility study (PFS), progress with industry collaborations, early planning and preparations for the Pilot Plant design and build, and general working capital.
Iondrive’s exclusively licensed technology extracts critical minerals from end-of-life lithium-ion batteries in a unique environmentally sustainable process.
The PFS, expected to be completed during the upcoming September quarter, is the gateway to proceeding with a Pilot Plant.
The issue price of $0.009 represents a 10% discount to the last traded price of $0.01 on May 29, 2024, and an 18% discount to the 15-day volume weighted average price of $0.011.
"Underscores strong support"
Iondrive Technologies CEO Ebbe Dommisse said: “We are thrilled with the successful completion of our capital raise, which underscores the strong support from both existing and new shareholders for our innovative battery recycling technology.
“The funds will be used to finalise our pre-feasibility study and progress towards establishing a Pilot Plant.
"I extend my thanks to our existing shareholders for their continued belief in our vision and warmly welcome our new investors.
“We are particularly encouraged by the recent recognition locally from the Australian Government and regions abroad — UK government, EU and USA — of the importance of advancing battery recycling technologies to support a sustainable future.
“We are excited by the progress we have made so far and the promising results emerging from our battery recycling technology. As we move forward, we look forward to updating our shareholders on our continued advancements and milestones."