Ann: Additional Information on Conditional Commitment from US DOE, page-51

Hi @Siber, good question. Here’s a few potential ways Novonix might raise capital or secure funds to meet loan conditions without issuing additional shares at a discounted price and diluting shareholder value. Remember the final solution is likely to be a mix of the below and more than smarter people than me (e.g. Novonix board and c-suite) have conjured up – financial sorts can get very creative.

1. Customer Prepayments. As we’ve discussed in the past. I think the challenges with this arrangement are clear – mostly consternation from customers. That might quickly change with Trump 2.0 though.
2. Strategic Partnerships or Joint Ventures. Partnering with another company to share the costs and risks of expansion while gaining access to additional resources and expertise. One example that’s a bit of a side note: I could see Tesla’s giga Nevada expansion including a wing for NAM which is mostly or fully paid for in return for NVX providing cheap anode for a period of time.
3. Sale and Leaseback Agreements. We could sell Corporate way and lease back. Or big blue. Or offer a private equity firm to “buy” Enterprise Way for us and lease it back. Many other creative options here.
4. Government Grants or Subsidies. We can still applying for additional government funding, tax credits, or incentives targeted at manufacturing and critical minerals projects. Remember Trump initiated a lot of the movement to bolster local critical mineral production. Trump loves this and would have no problem in handing out any amount of money if it helped the America First idea, or him personally.
5. Offtake Agreements and self funding. Bigger offtake agreements soon could result in more revenue sooner. What Novonix make is wildly profitable (don’t believe the downrampers, read read read and you’ll see how much they can make per kg. Elon Musk even likened Novonix’s business to software-type profits (can’t remember his exact words). If Novonix pushed back Enterprise Way they could conceivable self-fund their portion with profits (I don’t think this will or should happen, I advocate massive rapid ramp with tariff support).
6. Debt Financing or Convertible Debt. Raising funds through loans or issuing debt securities. Convertible debt can provide flexibility by allowing repayment in shares under favourable terms later. Again, not an option id like but would mean we do something more like we did with LGES where shares are sold for $1.6 or something like that.
7. Licensing or Royalties. Thing Cathode, but think other things too. Monetizes IP without requiring operational costs.
8. Asset Monetisation. Similar to sale and leaseback, just without the lease. We already see this with Mt Dromadary, but there are more options here.
9. Private Equity or Institutional Investment. Raising funds from private equity firms, sovereign wealth funds, or institutional investors without issuing public shares. Novonix is increasingly attractive for private equity, especially if Trump builds a big moat for them which is extremely likely.
10. Supplier or Vendor Financing. Negotiate with suppliers, like Harpers, for extended payment terms or co-financing agreements tied to future supply commitments. Reduces immediate cash outflows and means they have more cash on hand to support the expansion loan and works.
11. Retail Investment Products. Green bonds, other retail bonds and other investment products. Long shot but there might be something there.
12. Strategic Asset Sales. Selling stakes in subsidiaries (e.g. KORE or the (Zen?) bike company)
13. Milestone-Based Disbursement from LPO Loan. Working with the very supportive LPO to release portions of the loan based on progress milestones, split the loan into more tranches with smaller phases of construction/expansion.

There’s just a few ideas. Like I said, Novonix’s plans (A, B, C, D … etc) almost certainly all involve a combo of these and others. They will make it work, Enterprise Way expansion is why they exist as a company, that’s the river of gold. Cheers