Neo Battery closes $5-million private placement

Executive Summary

• Neo Battery Materials Ltd. has closed the order book on a fully subscribed non-brokered private placement of 9,803,921 units at $0.51 per unit, raising approximately $5 million in gross proceeds.
• The offering includes institutional investor representation and is subject to closing conditions, including TSX Venture Exchange approval, with closing expected by or around the week of October 27.
• Proceeds will be used to procure battery manufacturing equipment for a 3.2-acre expansion site and for working capital, supporting the company's goal of becoming a vertically integrated battery solutions provider.

Key Details

• Transaction Structure: Non-brokered private placement of 9,803,921 units.
• Price: $0.51 per unit.
• Gross Proceeds: Approximately $5 million.
• Subscription Status: Fully subscribed with institutional investor representation.
• Closing Timeline: Expected by or around the end of the week of October 27, subject to closing conditions (including TSX-V conditional acceptance).
• Warrant Terms: Each unit includes one common share and one non-transferable common share purchase warrant.
• Exercise Price: Warrants are exercisable at $0.80 per share.
• Warrant Duration: 36 months from the closing date.
• Finder’s Compensation: Up to 6% of gross proceeds in cash commission and/or finders' options equal to up to 6% of the total units issued.
• Use of Proceeds:
  1. Procuring cylindrical and prismatic-format battery manufacturing equipment and installations for the recently announced 3.2-acre expansion site.
  2. Working capital and general corporate overhead.
• Regulatory Context: Offered outside Canada under OSC Rule 72-503; not a related party transaction; not subject to TSX-V Policy 5.9.

Notable Quotes

• "With the vote of confidence of institutional investment, we are delighted to strengthen our balance sheet to proceed toward the commercialization and production of Neo's high performance lithium-silicon batteries. As discussed, we will deploy funds into building out the megawatt-hour (MWh) scale battery manufacturing facility to become a vertically integrated, end-to-end battery solutions provider to our drone, robotics, automotive and electronics pipeline and customers." — Spencer Huh, President and CEO