NEO Battery Announces Non-Brokered Private Placement Offering for Buildout of High-Performance Battery Manufacturing Facilities

Executive Summary

• NEO Battery Materials Ltd. announced a non‑brokered private placement of up to 9,803,921 units at CAD $0.51 per unit, targeting gross proceeds of approximately CAD $5 million.
• Each unit includes one common share and one non‑transferable warrant exercisable at CAD $0.80 for 36 months.
• Net proceeds are earmarked for purchasing cylindrical and prismatic battery manufacturing equipment for a newly announced 3.2‑acre expansion site, as well as working capital and general corporate purposes.

Key Details

• Units Offered: Up to 9,803,921 units (each = 1 common share + 1 warrant).
• Price per Unit: CAD $0.51.
• Aggregate Gross Proceeds: Approximately CAD $5 million (maximum).
• Warrant Terms: One warrant per unit; exercisable at CAD $0.80 per share for a period of 36 months from the closing date.
• Finder Compensation: Up to 6% cash commission of gross proceeds and up to 6% finder’s options on total units issued.
• Use of Proceeds:
• Procurement of cylindrical and prismatic‑format battery manufacturing equipment and related installations for a 3.2‑acre expansion site.
• Working capital and general corporate overhead.
• Offering Structure: Non‑brokered private placement to purchasers outside Canada under OSC 72‑503 exemption; securities not subject to resale restrictions.
• Regulatory Notes: Not a Related Party Transaction under MI 61‑101; subject to final acceptance by the TSXV.
• Closing Conditions: Completion contingent upon TSXV approval and satisfaction of customary closing conditions.

Notable Quotes

• “The capital raised will accelerate our expansion plans, enabling us to scale production of high‑performance silicon‑enhanced battery materials for drones, robotics, and electronics,” – Spencer Huh, Director, President & CEO.