Neo Battery closes $5-million private placement

Executive Summary

• Neo Battery Materials Ltd. has closed a non-brokered private placement offering, raising approximately $5 million in aggregate gross proceeds.
• The company issued 9,803,921 units at a price of 51 cents per unit, with net proceeds allocated to battery manufacturing equipment for a new expansion site and working capital.
• The transaction involved significant compensation to the placement agent, including cash commissions and stock options, and is subject to final regulatory approvals.

Key Details

• Gross Proceeds: Approximately $5 million.
• Units Issued: 9,803,921 units.
• Price Per Unit: 51 cents.
• Unit Composition: Each unit consists of 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 80 cents. The warrants are exercisable for 36 months from the closing date or until November 3, 2028.
• Use of Proceeds:
  • Procuring cylindrical and prismatic-format battery manufacturing equipment and installations for the recently announced 3.2-acre expansion site.
  • Working capital and general corporate overhead.
• Placement Agent Compensation:
  • Aggregate cash commission: $300,000.
  • Stock options: 588,240 non-transferable stock options.
  • Option Exercise Price: 51 cents.
  • Option Term: 36 months from the closing date.
• Regulatory Status: The offering is subject to closing conditions, including final acceptance by the TSX Venture Exchange.
• Investor Eligibility: Offered to purchasers 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.
• Related Party Status: Not a related-party transaction under Multilateral Instrument 61-101; not subject to TSX-V Policy 5.9.