Zentek increases private placement to $2.5-million

Executive Summary

• Zentek Ltd. has upsized its previously announced non-brokered private placement of units to a maximum of 2,358,490 units, increasing the gross proceeds to up to $2.5 million.
• The offering price remains at $1.06 per unit, with proceeds designated for working capital and general corporate purposes.
• Each unit includes one common share and a combination of Series A and Series B warrants, with specific exercise prices and acceleration clauses tied to share price performance.

Key Details

• Transaction Structure: Non-brokered private placement of units.
• Pricing: $1.06 per unit.
• Quantity: Up to 2,358,490 units.
• Gross Proceeds: Up to $2,500,000.
• Use of Proceeds: Working capital and general corporate purposes.
• Unit Composition:
  • One common share.
  • One-half of one common share purchase Series A warrant.
  • One-half of one Series B common share purchase warrant.
• Series A Warrant Terms:
  • Exercise Price: $1.50 per share.
  • Duration: 24 months from closing.
  • Acceleration Clause: If the closing price on TSX-V is at least $2 for 10 consecutive trading days (between 4 months + 1 day and expiry), the expiry can be accelerated to a date no fewer than 30 days from notice.
• Series B Warrant Terms:
  • Exercise Price: $2.00 per share.
  • Duration: 36 months from closing.
  • Acceleration Clause: If the closing price on TSX-V is at least $3 for 10 consecutive trading days (between 6 months and expiry), the expiry can be accelerated to a date no fewer than 30 days from notice.
• Closing Conditions: Subject to corporate and regulatory approvals, including TSX Venture Exchange approval.
• Hold Period: Four months plus one day from the date of issuance.