Gelion (AIM: GELN), a leading Anglo-Australian battery innovator, has conditionally agreed to acquire the entire issued share capital of UK-based lithium-sulfur (LiS) battery technology developer, OXLiD, for an aggregate consideration of up to approximately £4.2 million. This move marks a significant step in Gelion’s strategy to expand its reach in the electric aviation (including drones and eVTOL) and electric vehicle markets, leveraging OXLiD’s specialized expertise in LiS batteries.

Fundraising Efforts to Support Acquisition and Expansion

To facilitate this acquisition and further expansions, Gelion announces a proposed equity fundraising effort aiming to raise approximately £4.5 million. This will include the issuance of up to 18,601,789 New Shares at an issue price of 24 pence per share. The fundraising comprises several components: a conditional placing of shares, a subscription offer, and a retail offer, with the latter aiming to raise a maximum of £450,000 through the issuance of new ordinary shares.

Retail Offer and Investment Opportunities

Gelion extends the opportunity for retail shareholders to participate in the fundraising through a retail offer. This offer is conducted in the UK via the Bookbuild Platform and in Australia directly with qualifying shareholders. The retail offer is distinct from the placing and subscription, providing a unique avenue for smaller investors to engage with Gelion’s growth.

Role of Cavendish in the Fundraising Process

Cavendish is playing a pivotal role as the nominated adviser, sole broker, and bookrunner for the Placing. The Placing will be executed through an accelerated bookbuild, as detailed in the announcement appendix.

Acquisition and Fundraising: A Synergistic Move

The acquisition of OXLiD by Gelion is not just a financial transaction but a strategic alignment of technologies and expertise. OXLiD’s team, consisting of five highly experienced scientists, brings significant battery research experience and a portfolio of five patent applications, an exclusive licence, and access to blue-chip academic institutions in the UK. This collaboration is expected to enhance Gelion’s product development capabilities, especially in the advanced sulfur cathode material formulation and anode protection.

Comments from Gelion and OXLiD Leadership

John Wood, CEO of Gelion, emphasized the significance of this acquisition in accelerating the development of their LiS technology, noting its potential to contribute to more sustainable global transport and energy consumption. Dr. Adrien Amigues, Founder and CEO of OXLiD, expressed excitement about joining Gelion, highlighting the combined capabilities in advancing LiS battery technology for mass markets.

  Battery Innovation, battery technology, Electric Aviation, electric vehicles, Gelion, LiS Battery Technology, OXLiD, Sustainable Energy Storage, United Kingdom