Evion Secures $1.33M in Rights Issue as Panthera JV Sales Surpass Expectations

Successful Capital Raise Bolsters Growth Ambitions

Evion Group NL (ASX:EVG) has announced the successful completion of its non-renounceable rights issue, raising approximately $1.33 million at an issue price of 2.3 cents per new share. The strong uptake, with nearly 58 million new shares subscribed, reflects robust shareholder confidence in the company’s strategic direction and growth prospects.

Chair Heather Zampatti and Managing Director David Round both participated in the rights issue, underscoring management’s commitment to the company’s future. The funds raised will primarily support the ramp-up of production at the Panthera Expandable Graphite Joint Venture (JV) in India, where sales have already exceeded budgeted expectations.

Panthera JV Outperforming and Scaling Up

The Panthera JV is central to Evion’s growth strategy, producing expandable graphite – a critical material for various industrial applications including battery anodes. The JV’s sales performance surpassing forecasts has encouraged the company to plan a doubling of production capacity. This expansion aims to meet growing demand and capitalize on the positive market momentum.

Evion is also actively engaging with existing offtakers and exploring new customer relationships, which bodes well for sustained revenue growth. The company’s focus on operational scale-up aligns with broader trends in the graphite and battery materials sectors, where supply chain security and quality are paramount.

Bonus Options Offer to Reward Shareholders

In addition to the rights issue, Evion announced a pro-rata entitlement offer of bonus options to eligible shareholders. Shareholders will be entitled to one bonus option for every two shares held as of the record date (21 February 2025). These options carry an exercise price of 3.3 cents and a subscription price of 0.3 cents, with an 18-month expiry.

This move not only incentivizes continued shareholder support but also provides a mechanism to raise additional capital if options are exercised. The bonus options offer is expected to open on 26 February 2025, with full details to be outlined in a forthcoming prospectus.

Broader Strategic Initiatives

Beyond Panthera, Evion plans to allocate funds towards finalizing permitting and licensing for its Maniry Graphite Project in Madagascar, signaling a commitment to expanding its resource base. The company is also updating its battery anode materials study, which could unlock further value and technological insights in the fast-evolving battery materials market.

General working capital needs will also be supported by the capital raise, ensuring operational flexibility as Evion navigates its growth phase.

Looking Ahead

Trading of the new shares from the rights issue is expected to commence on 10 February 2025, with the company retaining the right to place any shortfall shares within three months. Euroz Hartleys will lead manage the shortfall placement and bonus options offer, providing market expertise to support these capital initiatives.

Evion’s successful capital raise and strategic initiatives position it well to capitalize on the growing demand for expandable graphite and battery materials. However, as with all mining and resource ventures, execution risks and market conditions will remain key factors to monitor.