Solus Advanced Materials to Raise 240 Billion KRW in Capital Increase... "Expanding North American Battery Copper Foil Business"

Full-Scale Launch of North American Anode Foil Business

Solus Advanced Materials' Quebec, Canada factory scheduled to begin construction this July.

[Asia Economy Reporter Jin-ho Kim] Solus Advanced Materials announced on the 2nd that it will carry out a paid-in capital increase worth a total of 240 billion KRW ahead of the full-scale launch of its North American battery copper foil business.

Solus Advanced Materials stated that it held a board meeting on the 28th and resolved to proceed with the paid-in capital increase. The method of capital increase will be conducted through a rights offering to shareholders followed by a general public offering of any unsubscribed shares.

Through this capital increase, the company plans to strengthen the funding base for its Quebec plant in Canada, scheduled to begin construction in July this year, accelerating its dominance in the North American battery copper foil market following Europe. Of the 240 billion KRW raised, 25 billion KRW will be allocated for overall corporate operating funds, and the remaining 215 billion KRW will be used entirely to acquire securities of Volta Energy Solution (VES), a subsidiary of Solus Advanced Materials.

This capital increase by Solus Advanced Materials aims to secure 215 billion KRW in investment funds as a major shareholder holding a 53.7% stake in VES, to aggressively target the North American battery copper foil market.

VES owns the Quebec plant in Canada, which serves as Solus Advanced Materials’ North American battery copper foil production base. In June, VES plans to secure a total of 400 billion KRW through a separate capital increase to establish a mass production system of 17,000 tons in the second half of 2024 at the Quebec plant.

Kwok Geun-man, CFO of Solus Advanced Materials, explained, "This capital increase is part of an aggressive investment to lay the foundation for expanding the battery copper foil business in line with the growth of the North American electric vehicle market." He added, "However, to address cash flow mismatches arising between the land purchase balance payment this month, the new shares listing in May, and the VES capital increase in June, we decided to proceed with short-term borrowings and monetary loans of less than three months."

This content was produced with the assistance of AI translation services.