Zentek Announces Closing of Fully Subscribed Brokered LIFE Offering for Gross Proceeds of C$18 Million

Zentek Ltd. closed a previously announced brokered private placement, raising gross proceeds of C$18 million through the sale of 18,000,000 units at C$1.00 per unit. Each unit consists of one common share and one warrant exercisable at C$1.50 until May 27, 2029. The offering, led by Red Cloud Securities Inc., was oversubscribed and includes the full exercise of the 3,000,000-unit agent’s option. Insiders (directors and officers) subscribed for 695,000 units. Net proceeds are earmarked for de‑risking the Albany Graphite Project (including a new Preliminary Economic Assessment by Micon International), advancing ZenGUARD™ commercialization, and general working capital.

The closing is the final step of a financing that was fully previewed. It was initially announced on May 14 (up to C$15 million plus a C$3 million option), confirmed as oversubscribed and fully allocated on May 19, and now completed on schedule. There are no new strategic investors, no change in terms, and no unexpected developments. The raise slightly exceeded the original target by exercising the option, but this was anticipated. The stock had already reacted sharply to the initial announcement (rising from $0.87 to $1.36) and has since corrected below the offering price. The closing itself does not alter the fundamental outlook; it simply provides the anticipated capital. The insiders’ participation is a mild positive signal but not material. Therefore, the news is routine and incremental.

Zentek Ltd. is a Canadian technology company operating three core platforms: 1. Albany Graphite Project (Ontario): A high‑purity graphite deposit with Indicated Resources of 22.9 Mt at 4.07% Cg and Inferred of 13.1 Mt at 2.87% Cg. The project has demonstrated bench‑scale production of 5N+ (99.9992%) nuclear‑grade graphite using a chlorine‑free electrothermal fluidized bed reactor. The upcoming PEA is expected to rerate the project’s value for nuclear, defence, battery, and other high‑value markets. 2. ZenGUARD™ air filtration platform: A patented graphene‑based coating that enhances viral filtration efficiency without increasing pressure drop. Recent milestones include Health Canada’s non‑pesticide classification (May 2026) and addition to the Government of Canada’s streamlined procurement source list. 3. Triera Biosciences: A wholly‑owned subsidiary conducting aptamer‑based therapeutic and diagnostic development (influenza, biosensor services) with government‑backed funding. CEO Mohammed Jiwan (since Dec 1, 2025) has refocused the company on disciplined execution, cost reduction, and milestone‑based capital allocation.