Livium Ltd has locked in A$1.575 million in initial funding from The Lind Partners, with potential to raise up to A$11.75 million over two years, while offering shareholders a discounted share purchase plan to support its recycling growth strategy.
- Initial A$1.575m funding from The Lind Partners
- Potential total funding capacity of A$11.75m over 24 months
- Share Purchase Plan launched at A$0.0082 per share
- Funds to support Envirostream efficiency and recycling adjacencies
- Board prioritised flexibility and asset protection in funding choice
Institutional Funding Secured with Flexible Terms
Livium Ltd (ASX:LIT) has secured an initial A$1.575 million investment from The Lind Partners, structured through a Share Subscription Agreement and a Monthly Share Purchase Agreement. This initial tranche includes a A$1.5 million advance and a first monthly tranche of A$75,000, with minimum gross funding guaranteed at A$2.4 million over 12 months and potential capacity reaching A$11.75 million over 24 months. The funding is unsecured, interest-free, and features a 90-day lock-up period restricting The Lind Partners to a fixed A$0.0135 subscription price during that time.
The Board’s decision to opt for this funding pathway followed a thorough review of alternatives, including traditional placements and convertible notes, weighing factors such as dilution risk, share price impact, refinancing needs, and asset encumbrance. Livium’s CEO Simon Linge emphasised the package’s flexibility and capacity as key benefits, enabling the company to preserve its core assets while advancing its recycling-centric strategy.
Share Purchase Plan Offers Retail Shareholders a Discounted Entry
Alongside the institutional funding, Livium has launched a Share Purchase Plan (SPP) priced at A$0.0082 per share, roughly a 10% discount to the recent five-day volume weighted average price (VWAP). Eligible shareholders in Australia and New Zealand can apply for up to A$30,000 worth of shares without brokerage fees, with the Board indicating their intention to participate on the same terms. The SPP aims to broaden shareholder participation while supplementing the capital raised via The Lind Partners.
Capital to Fuel Recycling Growth and Strategic Initiatives
The funds raised will be deployed to enhance Envirostream’s battery recycling operations, including near-term process efficiency projects and volume growth under existing contracts. Envirostream, Livium’s wholly owned lithium-ion battery recycling subsidiary, recently formalised a multi-year framework agreement with CATL HK, the world’s largest lithium-ion battery manufacturer, underlining its market-leading position in Australia.
Livium is also advancing adjacent recycling technologies, such as rare earth element extraction in partnership with the University of Melbourne and black mass processing collaborations with Sumitomo Corporation. The funding will also support activities to preserve or realise value from VSPC, Livium’s battery materials business, where strategic alliance discussions are ongoing. If these discussions do not culminate in a binding transaction, Livium plans to transition VSPC to care and maintenance by year-end to limit expenditure.
Operational Progress Amid Financial Headwinds
In its Q4 FY26 report, Livium disclosed A$1.65 million in revenue and A$0.64 million gross profit, with battery collections totaling 231 tonnes, including 134 tonnes of lithium-ion batteries. The company noted a mix shift toward more complex non-lithium-ion batteries, impacting margins. Envirostream’s recent projects include a strategic recycling initiative for Synergy’s Alkimos Beach Battery Energy Storage System and an extended contract with Sell & Parker, which includes volume acceleration and capacity expansion.
Livium’s cash balance stood at A$2.3 million at quarter-end. The company is focused on progressing toward cash neutrality through disciplined cost management, revenue growth, and the resolution of VSPC’s funding needs. The Lind funding and SPP are expected to provide additional runway to support these objectives.
Insurance Claims and Corporate Moves
Envirostream continues to manage legacy insurance claims related to a 2019 fire at its Campbellfield site, with settlement offers recently made to claimants representing over half of the A$5.4 million provision. The timing and outcome remain uncertain, with no adjustments made to the provision in the current period.
Livium also completed the relocation of its head office and operations to the Derrimut Hub, consolidating its Victorian footprint and increasing processing capacity. The company is actively exploring strategic partnerships and acquisitions to support measured expansion of its battery recycling operations.
Bottom Line?
Livium’s flexible funding arrangement with The Lind Partners and shareholder-backed SPP provide a crucial financial bridge as it navigates operational challenges and strategic investment decisions, particularly around VSPC’s future.
Questions in the middle?
- Will shareholder uptake of the SPP meet expectations to meaningfully supplement institutional funding?
- How will Livium balance growth investments with its goal of achieving cash neutrality in the near term?
- What are the prospects and timelines for concluding a binding strategic alliance or investment in VSPC?