Just two days after 3DOM Singapore scrapped its US$1 billion ($1.36 billion) RTO (reverse takeover) deal with F&B operator Chaswood Resources, it has announced a similar deal with another Singapore Exchange (SGX)-listed company Reenova Investment.
Should the deal go through, Reenova, which plans to sell its rare earth mining concession, will see itself transform into a lithium-ion battery company instead, making and selling products developed by 3DOM Inc, the parent company of 3DOM Singapore.
3DOM Singapore’s agreement with Chaswood was signed just on Nov 5, but the deal was called off on Nov 15.
In an interview with The Edge Singapore, 3DOM Singapore’s CEO Shusuke Oguro says this was because as the two parties negotiated the transaction, they identified “differences in perspective and approaches to the implementation of the acquisition, and it was therefore determined to terminate the agreement”.
“We saw an opportunity to move smoothly through the RTO process [with Reenova]. Given these various conditions, we saw Reenova as the best choice,” adds Oguro.
According to its SGX filing, Reenova will be issuing new shares worth some US$1 billion to acquire control of 3DOM Singapore.
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The new shares will be issued at 0.75 cent per share, a 150% premium to Reenova’s last traded price of 0.3 cent before a trading suspension last November. Upon completion of the deal, 3DOM will end up owning 96.4% of the enlarged share capital of Reenova.
Reenova, for years, has been trying to get its tantalum rare earth project in Madagascar off the ground. However, because of the pandemic, it was not able to make meaningful progress. It was also unable to raise sufficient funding for further exploration and production.
On Nov 10, Reenova, which was known as ISR Capital, said it will sell its stake in the concession to an entity called GRM Group for US$6 million. Upon completion of the sale, Reenova will become a shell company.
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The value of 3DOM Singapore lies in its exclusive licence to make and sell lithium ion batteries developed by 3DOM Inc. “One of the company’s objectives here in Singapore is to utilise its licence that it has to supply advanced lithium-ion battery technology throughout the region,” says Oguro.
“One important feature of our battery technology is long lifespan of our batteries. For example, we could provide these batteries for use in mobility applications like EVs (electric vehicles), and then later use those batteries for storage applications to facilitate the generation of renewable energy,” he adds.
According to Reenova, 3DOM Singapore is expected to commence revenue-generating business in 2022, starting with lithium ferro phosphate (LMFP) batteries and high-temperature resistant lithium-ion batteries.
To this end, 3DOM Singapore also said that it has firmed up suppliers and OEM plants to fulfil orders from battery firms and global automobile manufacturers for deliveries in mid-2022.
3DOM Inc is also in advanced talks with OEM battery makers in Japan and Taiwan, adding that “these parties will be instrumental in 3DOM Singapore’s plans to roll out the manufacturing and sales of batteries within the next 12 months”.
The parent company has also been in negotiations with major automakers on behalf of 3DOM Singapore, so as to secure orders for electric vehicles and motorbikes, as well as for energy storage systems for utility companies. These two segments of clients will form the core of 3DOM Singapore’s business beginning from 2022.
Back in Japan, 3DOM Inc’s battery technology was also reported by Bloomberg to have been considered by investment giant SoftBank’s telecoms arm as it pushes further into wireless communications projects that use flying devices.
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Oguro, who is also 3DOM Inc’s executive vice president, says in the Bloomberg report that its technology will likely be used for future mobility applications that require high-battery capacities, such as flying taxis and drones.
“We are currently creating samples for use in SoftBank’s product and we are preparing to supply those samples early next year,” he tells The Edge Singapore.
He also says that he understands the applications that 3DOM’s technology is going to be used in are related to a new platform for telecommunications.
“We are planning to supply a battery that uses our core separator technology, as well as a high-energy density, nickel rich cathode material and lithium metal as the anode material,” Oguro reveals.
