NOVONIX Faces Further Cash Demands Below A$0.12 Floor

US$7 Million Payment Reduces Yorkville Balance

NOVONIX Limited (ASX:NVX; NASDAQ:NVX) has paid US$7 million to YA II PN, Ltd, an affiliate of Yorkville Advisors Global, under its convertible debenture funding agreement. The second amortisation payment redeemed debentures with an equivalent face value, taking the amount outstanding under the agreement down to US$21 million.

The payment came from NOVONIX’s existing cash reserves. The announcement does not disclose how much cash remains, making the immediate effect on liquidity difficult to assess from the filing alone. It does, however, confirm that the company is using cash to meet an obligation linked to its share-price performance rather than receiving fresh funding through this transaction.

Share Price Floor Keeps Amortisation Risk Active

The payment was triggered by an “Amortisation Event” under the agreement, which applies when NOVONIX’s daily ASX volume-weighted average share price falls below the A$0.12 floor price for the period specified in the contract. The company says it will continue monitoring its share price against that threshold.

If the event continues, the agreement requires further amortisation payments on a rolling 30-day basis. Each payment is set at 20% of the amount outstanding at the time of the Amortisation Event, continuing until the event ends or the balance is repaid in full. The filing does not state when the current event began or provide a schedule for future payments.

Cash Runway Remains the Unanswered Variable

Reducing the debenture balance lowers the amount owed to the investor, but it also removes US$7 million from NOVONIX’s available cash. That trade-off matters for a company still working towards North American synthetic graphite production and facing funding needs associated with scaling its operations. The filing does not quantify the cash impact beyond confirming the source of the payment.

The next material signals are therefore straightforward: whether the share price can remain above the A$0.12 floor, whether another amortisation notice is issued, and how the company’s cash balance evolves after the payment. A third payment would not be automatic if the Amortisation Event ceases, but the agreement leaves that possibility open while the condition persists.