An interesting little story from our friends at NVX from the...

An interesting little story from our friends at NVX from the Mark*t Ind*x newsletter:

I love tracking dodgy director transactions – And this is one of them.

The Chairman of battery technology company Novonix ($315m market cap, shares down 44% in the past twelve months) forgot to disclose a selldown of 337,000 shares (US$183,000) on 1 May 2024.

The ASX noticed this change about three weeks later and lodged the ‘Change of Director’s Interest Notice’ on 24 May. The ASX said Novonix has a good history of compliance with listing rules and routinely complies with its continuous disclosure obligations – so they did not suffer any repercussions.

End of story.

Just kidding – Novonix entered into a trading halt on Wednesday after the AFR wrote “Citi’s equities desk was wall-crossing investors on Wednesday for a capital raising [for Novonix].” The trading halt said “no decision has been made to undertake a capital raising and Novonix is seeking the trading halt to manage its continuous disclosure obligations.”

What's worse is that Novonix traded for around 10 minutes after the AFR article was published. During this time, the stock fell around 7.9%.

Come Friday, Novonix said it is not undertaking a capital raise. It would be funny if they kicked off a capital raise over the next few weeks or months.