IperionX Limited expects to raise about $67 million through commitments for the placement of 31.2 million in shares, although it’s “not an offer (available) in the United States,” according to a press release attached to a Form 6-K filed with the SEC on Monday.
“This announcement has been prepared for publication in Australia and may not be released to U.S. wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction,” according to the release.
SEC Form 6-K is a form that foreign private issuers of securities are required to submit. Fully paid shares are shares issued for which no more money is required to be paid to the company by shareholders on the value of the shares.
IperionX has its head office in Charlotte, although the company is administered by executives in Perth, Australia. The placement of fully paid shares is expected to raise about $100 million in Australian dollars.
IperionX officials declined to answer follow-up questions, citing SEC regulations that restrict providing information until the capital raise is completed and the shares issued. That is likely to occur by early next week, they said.
IperionX halted trading on Nasdaq on Thursday and Friday last week in anticipation of Monday’s announcement. Its stock price closed Monday at $22.68, down 54 cents or 2.33%. Its stock price has increased by more than 198% in the last year.
Here are some details IperionX released about its capital raise:
IperionX will use proceeds from the placement to expand its Virginia titanium production campus, including studies, equipment and working capital, and acquisition of intellectual property. In September 2022, IperionX announced plans to invest $82.1 million in Halifax County, Virginia, near the North Carolina state line, on a recycled titanium metal power facility.
IperionX announced in August successful test runs at its Titanium Manufacturing Campus in South Boston, Virginia, and expects to have “end-to-end system operations” by late 2024, according to a release.
Iperion X Executive Chair Todd Hannigan has subscribed for 539,750 new shares to raise about $1.3 million. More than 30.6 million shares will be issued on or about Friday, Oct. 26. The issuance of shares to Hannigan are subject to shareholder approval at a general meeting.
In September IperionX said it expects a contract with Ford for manufactured metal components to generate $11 million in annual revenue. Ford is the second-largest U.S. automaker.
The contract to supply Ford with titanium metal powder and manufacturing components runs for 45 months, starting in 2025, according to a securities filing. It represents IperionX’s effort to crack the estimated $4 billion global titanium market.
China and Russia control roughly 70% of the global titanium supply chain, IperionX told an analysts’ conference in August. Due to its high strength-to-weight ratio and corrosion resistance, titanium has potential as a substitute for higher-carbon metals, especially the estimated $165 billion global market for aluminum and $200 billion market for stainless steel.
IperionX aims to produce high-performance titanium alloys from titanium minerals or scrap titanium. Using patented metal technologies in its processing, the company said it intends to reduce energy usage, costs and carbon emissions in supplying titanium to advanced U.S. industries. Those include consumer electronics, space, aerospace, defense, hydrogen, electric vehicles and additive manufacturing.
Aside from its sites in West Valley City, Utah, and South Boston, Virginia, IperionX owns about 11,000 acres near Camden, Tennessee, about 100 miles west of Nashville. The location of the so-called Titan Project is one of the largest U.S. titanium, zircon and rare-earth mineral resources, the company said.
IperionX was formerly known as Hyperion Metals Limited and changed its name to IperionX Limited in February 2022. The company was incorporated in western Australia in 2017.