Funds raised from the placement will be used for working capital and the ramp-up of Mt Cattlin and the Jiangsu lithium carbonate plant, potential acquisitions and debt repayment.

The raising was completed with sophisticated and institutional investor clients of Azure Capital, Morgan Stanley and Hemsec Global Capital.

The placement was priced at $1.10, a 13.6% discount to the 30-day volume-weighted average price prior to the pricing date of April 8.

Shares in Galaxy, which began trading this morning after being suspended, fell as much as 16% to an intraday low of $1.15 with around 1.7 million shares changing hands by 11.08am AEST.

Galaxy managing director Iggy Tan said proceeds from the placement would strengthen the company's capital base.

"We will use the funds for working capital and ramp-up of our Mt Cattlin spodumene project in Western Australia and Jiangsu lithium carbonate plant in China, which we're due to commission at the end of the quarter," he said.

"The timely commissioning and ramp-up of Galaxy's operations are essential in meeting the imminent surge in demand for lithium carbonate from the EV/E-bike [motor scooter] market.

"The raising will also provide the company with funds for potential acquisitions and the repayment of some debt."

The raising will be completed in two tranches with the first tranche consisting of 31 million shares to raise $34.1 million and the second tranche consisting of 78.1 million shares to raise $85.9 million.

Shareholders will meet to approve the second tranche of shares at the company's annual general meeting to take place on May 13.

Shares in Galaxy have rebounded to $1.24, down 13c or 9%, in late morning trade.