Novonix (ASX:NVX) secured firm commitments for about AU$20.7 million through a share placement to institutional investors priced at AU$0.16 per share, according to a Wednesday filing with the Australian bourse.

The company is also launching a non-underwritten share purchase plan at the same price. The plan will run from June 22 to Aug. 14, and will raise about AU$3 million before costs if it is fully subscribed.

As the share purchase plan entails a higher discount than the maximum 20% allowed, it is subject to either a waiver of ASX listing rules or shareholder approval, the company said.

Novonix plans to use the aggregate proceeds for capital expenditure to support production capacity and meet customer demand forecasts.

The company's shares fell 25% in recent Wednesday trade.