Former Dow Chemical boss Andrew Liveris and other Novonix directors are poised to snare up to $4.9m worth of options

A financially-squeezed Brisbane firm is poised to hand its high-profile board members 15 million options, worth up to $4.9 million, in an effort to conserve cash.

CREATING INCENTIVE

We know the future is bright for renewable energy and rechargeable batteries.

But the road getting there will be neither smooth nor straight.

For evidence of this, look no further than Brisbane lithium-ion battery hopeful Novonix, which enticed former Dow Chemical boss Andrew Liveris to invest before the 2015 IPO and take up a board role last year.

The company has ambitious plans to snare a piece of the global market, which is tipped to triple in value to $60 billion over the next 10 years or so. It’s got a foothold in the US and Canada, as well as sales in 14 countries.

Former Dow Chemical boss Andrew Liveris.

But it’s still in full cash-burn mode, posting a $10.1 million loss in the 2018 financial year and another $5.1 million in red ink over the six months to December. To compensate, it’s gone through several capital raisings, with the most recent one in March rustling up $15 million.

The financial squeeze has prompted Novonix directors to call an EGM at the end of the month to secure shareholder approval for the directors to pocket 15 million options worth up to $4.9 million to “reward and incentivise’’ them while “allowing the company to conserve cash’’.

Liveris is set to get 9 million options worth as much as $2.9 million. Managing director Philip St Baker will reap 2 million valued at up to $652,200.

The rest--including Liveris’s brother-in-law, Tony Bellas, and Liveris’s son, Nick--must settle for 1 million options each that could be worth $326,100 a piece. Staff will also split another 1 million options.

Investors, who have seen the share price tumble from a high of $1.93 in late 2017 to Thursday’s close of 61 cents, are likely to be underwhelmed that the largesse will eventually end up diluting their holding by just over 10 per cent.

They will also be asked at the meeting to green light the issuing of 10 million unsecured loan notes to the St Baker Energy Innovation Fund at an issue price of 40 cents per note.

Novonix borrowed $6 million from the fund earlier this year to boost its stake in a US entity based in Tennessee from 50 per cent to 75 per cent.

Meanwhile, it emerged last month that St Baker borrowed $1.5 million from the company to significantly boost his shareholding despite the avowed need to “conserve cash’’. He picked up 5 million more shares after exercising his options over the stock.

CONVENTION BOOM

More evidence surfaced yesterday that Brisbane’s convention business is booming and will continue to do so in the years ahead.

Convention Centre Bob O’Keeffe boss revealed that the complex just wrapped up its best year ever, with a record number of gatherings generating about $300 million for the local economy.

Brisbane Convention and Exhibition Centre boss Bob O'Keeffe.

Lord Mayor Adrian Schrinner also announced that, in the year to July, another 91 business events worth just over $112 million had been nailed down through 2026.

That will see more than 47,000 delegates pass through the city, including those coming here for the sure-to-be-fascinating International Peptide Symposium in 2021.

MOMENTUM BUILDS

As the momentum builds for Brisbane’s possible bid for the 2032 Olympics, one of its greatest champions is tipped to come to the city next month to lead the cheerleading.

Yes, swimming legend Ian Thorpe is expected to make the case for hosting the world’s greatest sporting event when he fronts up at an East Coast Forum event sponsored by Michael Johnson, the former Liberal MP turned investment consultant.

Swimming legend Ian Thorpe.

It’s not the first time the pair, who struck up a business partnership after the 2000 Sydney games, have joined forces to spruik an Olympics bid.

Back in 2015, the gents hosted a breakfast in Brisbane to talk up a bid for the 2028 games and mixed it up with the Dalai Lama, who happened to be in town.

Dow Chemical boss Andrew Liveris plans to join the board of battery firm Novonix

Busy lives lead to Ian Thorpe and boyfriend Ryan Channing splitting