Zentek Announces Brokered LIFE Offering for Gross Proceeds of up to C$15 Million

Zentek Ltd. announced on May 14, 2026 a brokered private placement (LIFE offering) with Red Cloud Securities for gross proceeds of up to C$15 million. The offering consists of up to 15 million units at C$1.00 per unit, each unit comprising one common share and one common share purchase warrant exercisable at C$1.50 for 36 months. The agent has an option to place an additional 3 million units for up to C$3 million. Net proceeds are earmarked primarily for the development and de‑risking of the Albany Graphite Project—including a new Preliminary Economic Assessment (PEA) by Micon International and advancement of pre‑feasibility work—and for continued commercialization of the ZenGUARD™ enhanced air filter platform. The financing follows a series of recent positive operational and regulatory milestones, most notably the federal government’s addition of ZenGUARD filters to the ISC’s Pathway to Commercialization source list, making them directly purchasable by all Canadian federal departments and agencies.

Evaluated in the context of the company’s historical progression, this financing is a material positive event. Under new CEO Moe Jiwan, Zentek has undergone a disciplined strategic reset since late 2025, narrowing its focus to three core platforms: Albany Graphite, ZenGUARD, and Triera, while cutting costs and tying future capital raises to specific milestones. The most recent news—the ZenGUARD federal supply agreement on May 13—was a pivotal commercial breakthrough. Coupled with the immediate follow‑on $15M brokered offering, the company now has both a validated revenue channel and the capital to advance its flagship Albany Graphite PEA (targeted for summer 2026). The financing’s size and brokered nature (Red Cloud) indicate improved market confidence after a prolonged share‑price decline. It materially de‑risks the near‑term funding gap and provides the means to execute the Albany value‑realization strategy, while supporting ZenGUARD’s commercial rollout. The offering price of C$1.00 is above the recent all‑time low of C$0.58, though dilutive; however, the attached warrants (C$1.50 strike) align with upside potential if milestones are met. The overall impact exceeds routine incremental news and should positively influence the stock’s trajectory, especially if the PEA demonstrates robust economics for the high‑purity graphite deposit.

Zentek Ltd. is a Canadian advanced materials and nanotechnology company with three primary platforms: - Albany Graphite Project (Ontario): 100%‑owned high‑purity graphite deposit (Indicated: 22.9 Mt @ 4.07% Cg; Inferred: 13.1 Mt @ 2.87% Cg). Bench‑scale tests have produced 5N+ purity (99.9992% Cg) graphite, suitable for nuclear reactors, defense, and battery applications, using a chlorine‑free electrothermal fluidized bed reactor. A new PEA is imminent. - ZenGUARD™: Graphene‑based antimicrobial air filtration coating that achieves 5× viral filtration efficiency of standard MERV 8 filters without increasing pressure drop or energy use. Now cleared for direct federal procurement in Canada and in pilot with U.S. manufacturer Quality Filters. - Triera Biosciences: Wholly owned subsidiary developing aptamer‑based diagnostics/therapeutics for influenza and other infectious diseases; also offering contract research services.