The raising will see 320 million shares be issued to institutional and sophisticated investors at $0.005 per share.
LWP will have a 50% ownership in the JV, which will own 3 patent applications, for an investment of $1.6 million cash and 30 million LWP shares.
Funds invested will be used to fast track the development of the JV's patent-pending graphene synthesis technology and aluminum-graphene battery.
LWP have also launched a share purchase plan (SPP) following the placement, which is expected to raise an additional $500,000.
Siegfried Konig, chairman, commented:
"The funding we have secured through the placement will allow LWP to fund its investment without denuding existing resources so that together with our JV partner we can fast track the development of patent #1, with the target of delivering the first prototype by the end of 2016.
"Whilst we remain committed to the ongoing commercialisation and licensing of our ceramic proppant technology, which remains on track, this investment provides LWP with a second unique disruptive energy technology, and exposure to the rapidly growing global battery market for electric vehicle and battery energy storage sectors."
Patent #1 development program
Patent application #1 relates to electrical energy storage applicable in an aluminum-graphene-oxygen battery.
Development is estimated to take 6 to 12 months and consist of:
- construction of first prototype battery;
- independent testing of prototype; and
- building of up to 5 battery prototypes for evaluation by potential licensees.
Once the JV licenses patent #1 it intends to commence proto-typing and commercialisation for patents #2 and #3.
Share Purchase Plan
The SPP will give eligible shareholders the opportunity to increase their investment in LWP at the same price paid by sophisticated investors in the $1.6 million placement.
The board has an expectation that the SPP will raise $500,000.
The SPP opens on 29 June, 2016 and closes on 20 July, 2016.
While LWP had sufficient resources to fund the JV before the placement and SPP, the board did not wish to reduce its strong cash position.