EcoGraf (ASX:EGR) share price flying 14% higher on funding update

What was announced in the funding update?

| More on:
A graphic featuring renewable energy sources such as wind, solar and battery power, indicating positive share prices growth in the ASX renewable sector

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The EcoGraf Ltd (ASX: EGR) share price has surged more than 14% higher in today’s trading session.

Investors are jumping for shares in the battery anode manufacturer after EcoGraf released a funding update earlier today.

At market close, the EcoGraf share price is 8.82% higher and trading at 74 cents. The EcoGraf share price was up more than 14% earlier today after hitting an intra-day high of 78 cents.

Let’s take a look at what EcoGraf announced.

EcoGraf share price gets boost from funding update

Earlier today, EcoGraf provided an update on funding arrangements for the development and expansion of its battery anode material facility in Western Australia.

According to the update, the Australian Government’s export credit agency is poised to lend EcoGraf US$35 million to fund the facility.

EcoGraf noted that the company will fund the initial phase of the development using its existing cash reserves.

The company’s cash reserves were topped up following a $54.6 million institutional placement earlier this year.

EcoGraf also highlighted that the expansion phase would be financed through a combination of cash reserves and loan funding.

The proposed facility is slated to produce high purity battery anode material using the company’s proprietary EcoGraf™ HFfree purification process.

EcoGraf has estimated a construction timeframe for the facility to be around 11 months. Following construction, the company plans to undertake a 12-month expansion program.

More on EcoGraf

EcoGraf is a diversified battery anode material company that aims to produce high purity graphite products for the lithium-ion battery market.

The company’s flagship HFfree purification technology enables an environmentally responsible manufacturing process.

In addition, its facility in Western Australia EcoGraf is also in the process of developing its Epanko Graphite Project in Tanzania.

EcoGraf made headlines earlier this week after releasing results for its recycled lithium-ion battery anode.

The company reported strong results from the purification process in line with major lithium-ion battery manufacturer specifications.

Snapshot of the EcoGraf share price

The EcoGraf share price has had a volatile performance in 2021.

Shares in the battery material company opened the year at around 16.5 cents, before hitting a high of $1.07 in mid-February.

Despite the wide trading range and volatility, shares in EcoGraf are trading more than 318% higher for the year.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

The ASX 200 looks set to have a tough day on Wednesday...

Read more »

Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Tuesday.

Read more »

A man in business suit wearing old fashioned pilot's leather headgear, goggles and scarf bounces on a pogo stick in a dry, arid environment with nothing else around except distant hills in the background.
Share Market News

Why the ASX 200 is rallying after the RBA’s rate hike today

The benchmark index has lifted in the face of the interest rate hike today.

Read more »

A police office points their detector at a speeding car, this one is going to get a speeding ticket.
Share Market News

IOUpay shares issued a speeding ticket after rocketing 55% today. What happened?

It has been a rollercoaster ride for IOUpay shareholders on Tuesday.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

ASX 200 midday update: Regis Resources jump, big four banks fall ahead of RBA meeting

The ASX 200 is on form again on Tuesday...

Read more »

a man in a hard hat, high visibility vest and gloves holds a stop sign and holds up a hand in a halt gesture on a road.
Share Market News

What’s happening with Firefinch shares following a $13 million lithium sale?

Firefinch shares are going nowhere today.

Read more »

a man with a moustache sits at his computer with his hands over his eyes making a gap between his fingers so he can peek through to his computer screen.
Share Market News

How did the Vanguard Australian Shares Index ETF perform in June?

ASX blue chip shares had a tough time during June.

Read more »

A woman sits at her computer in deep contemplation with her hand to her chin and seriously considering information she is receiving from the screen of her laptop regarding the Xero share price
Share Market News

Why ASX 200 value shares are surviving the sell-off better than growth shares

ASX value shares are down 5.45% year to date while growth shares are down 16.5%.

Read more »