Neo Battery closes $5.5-million private placement

Mr. Spencer Huh reports NEO BATTERY CLOSES UPSIZED NON-BROKERED PRIVATE PLACEMENT OFFERING OF $5.5 MILLION Neo Battery Materials Ltd. has closed its upsized non-brokered private placement through the issuance of 10,785,836 units at a price of 51 cents per unit for aggregate gross proceeds of approximately $5.5-million. Each unit consists of one common share of the company and one non-transferable common share purchase warrant. Each whole warrant will be exercisable to acquire one common share of the company at an exercise price of 80 cents for a period of 36 months from the closing date or until Sept. 29, 2028. The net proceeds of the offering are expected to be allocated toward: (i) securing the South Korean battery components and cell equipment and facilities to manufacture drone, unmanned aerial vehicle (UAV) and robotics batteries; (ii) purchases of scale-up equipment for silicon battery material development; and (iii) working capital and general corporate overhead. In connection with the offering, the company paid an aggregate cash commission of $203,806.77 to the eligible finders. The offering is subject to final acceptance of the TSX Venture Exchange. The units under the offering have been offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Section 2.3 of Ontario Securities Commission Rule 72-503, Distributions Outside Canada, and accordingly, the securities issued pursuant to OSC 72-503 will not be subject to resale restrictions. The offering is not a related party transaction as defined by Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, and therefore is not subject to TSX-V Policy 5.9. About Neo Battery Materials Ltd. Neo Battery Materials is a Canadian battery technology company focused on developing and producing silicon-enhanced lithium-ion batteries in drones, unmanned aerial vehicles (UAV), robotics, unmanned systems, electronics, electric vehicles and energy storage systems for AI (artificial intelligence) data centres. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries, and provides end-to-end battery solutions from materials selection, cell architecture and process optimization. The company aims to be a globally leading producer of high performance lithium-ion battery components and materials, building a secure, robust battery supply chain in North America. We seek Safe Harbor.