NEO Battery Closes Non-Brokered Private Placement Offering of $5 Million

Executive Summary

• NEO Battery Materials Ltd. closed a non‑brokered private placement of 9,803,921 units at CAD $0.51 per unit, raising approximately CAD $5 million in gross proceeds.
• Each unit includes one common share and one non‑transferable warrant exercisable at CAD $0.80 for up to 36 months; the company also issued 588,240 stock options at an exercise price of CAD $0.51.
• Net proceeds are earmarked for purchasing battery manufacturing equipment for a new 3.2‑acre expansion site and for general working capital and corporate overhead.

Key Details

• Units sold: 9,803,921 units @ CAD $0.51 each → Gross proceeds: ≈ CAD $5,000,000.
• Unit composition: 1 common share + 1 non‑transferable warrant (exercisable at CAD $0.80 per share).
• Warrant term: exercisable for 36 months from closing date or until 2028‑11‑03.
• Stock options issued: 588,240 options @ exercise price CAD $0.51, exercisable for 36 months.
• Cash commission paid: CAD $300,000 to placement agents.
• Use of proceeds:
• Procurement and installation of cylindrical and prismatic‑format battery manufacturing equipment at the newly announced 3.2‑acre expansion site.
• Working capital and general corporate overhead.
• Regulatory notes: Offering made under OSC 72‑503 exemption (distributions outside Canada); not a related‑party transaction; subject to TSXV final acceptance.
• Closing conditions: Receipt of all necessary approvals, including TSXV acceptance.

Notable Quotes

• “The successful close of this financing underscores investor confidence in our low‑cost silicon‑enhanced battery technology and provides the capital needed to accelerate our expansion and production capabilities.” – Spencer Huh, Director, President & CEO.