Novonix (ASX:NVX) said its share price falling below the floor price of AU$0.12 under its convertible debenture agreement with investor YA II PN has triggered an amortization event, requiring the company to pay $7 million to the investor before Sept. 21, according to a Thursday Australian bourse filing.

The company said the $7 million payment represents 20% of the $35 million amount outstanding under the agreement, with convertible debentures of equivalent face value to be redeemed upon payment, reducing the amount outstanding to $28 million.

If the amortization event continues, further payments of 20% of the amount outstanding at the time of each event will be required on a rolling 30-day basis until the event ceases or the amount outstanding is repaid in full, the filing added.

The company added that it intends to fund the payment from existing cash reserves.

The company's shares rose past 9% in recent Thursday trade.