Neo Battery arranges $7-million private placement

Executive Summary

• Neo Battery Materials Ltd. has arranged a non-brokered private placement of up to approximately 11,666,667 units for aggregate gross proceeds of up to approximately $7 million.
• Each unit consists of one common share and one non-transferable common share purchase warrant, with warrants exercisable at 85 cents per share for 36 months.
• Net proceeds will be used to install additional battery manufacturing equipment at the Gimje factory and expansion site, as well as for general working capital.

Key Details

• Offering Size: Up to 11,666,667 units.
• Price: 60 cents per unit.
• Gross Proceeds: Up to approximately $7 million.
• Unit Composition: Each unit comprises one common share and one non-transferable common share purchase warrant.
• Warrant Terms: Each whole warrant is exercisable to acquire one common share at an exercise price of 85 cents.
• Warrant Duration: 36 months from the closing date of the offering.
• Finder’s Compensation: The company may pay a cash commission of up to 6% of gross proceeds and issue finders' options of up to 6% of the total number of units issued.
• Use of Proceeds:
  1. Installing additional battery manufacturing equipment (including formation and cylindrical/prismatic cell assembly) at the operational Gimje battery factory and the expansion site.
  2. General working capital purposes.
• Regulatory Status: Offered outside of Canada pursuant to an exemption under Section 2.3 of Ontario Securities Commission Rule 72-503; securities are not subject to resale restrictions.
• Transaction Type: Not a related party transaction; subject to final acceptance of the TSX-V.

Notable Quotes

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