Neo Battery closes $5-million private placement

Mr. Spencer Huh reports NEO BATTERY CLOSES NON-BROKERED PRIVATE PLACEMENT OFFERING OF $5 MILLION Neo Battery Materials Ltd. has closed its non-brokered private placement of 9,803,921 units at a price of 51 cents per unit for aggregate gross proceeds of approximately $5-million. Each unit consists of one common share of the company and one non-transferable common share purchase warrant. Each whole warrant will be exercisable to acquire one common share of the company at an exercise price of 80 cents for a period of 36 months from the closing date of the offering or until Nov. 3, 2028. The net proceeds of the offering are expected to be allocated toward: (i) procuring cylindrical and prismatic-format battery manufacturing equipment and other relevant installations for the recently announced 3.2-acre expansion site; and (ii) working capital and general corporate overhead. In connection with the offering, the company paid an aggregate cash commission of $300,000 and 588,240 non-transferable stock options of the company exercisable at an exercise price of 51 cents for a period of 36 months from the closing date of the offering. The offering is subject to certain closing conditions, including, but not limited to, the receipt of all necessary approvals, including the final acceptance by the TSX Venture Exchange. The units under the offering are being offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Section 2.3 of Ontario Securities Commission Rule 72-503 (Distributions Outside Canada), and accordingly, the securities issued pursuant to OSC 72-503 will not be subject to resale restrictions. The offering is not a related-party transaction as defined by Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions), and, therefore, is not subject to TSX-V Policy 5.9. About Neo Battery Materials Ltd. Neo Battery Materials is a Canadian battery material technology company focused on developing silicon anode materials for lithium-ion batteries in electric vehicles, electronics and energy storage systems. With a patent-protected, low-cost manufacturing process, Neo Battery enables longer-running and ultrafast-charging batteries compared with existing state-of-the-art technologies. The company aims to be a globally leading producer of silicon anode materials for the electric vehicle and energy storage industries. We seek Safe Harbor.