Zentek Announces Closing of Non-Brokered Private Placement of Units for Gross Proceeds of $2,479,227

On October 22, 2025, Zentek announced the closing of its previously announced and upsized non-brokered private placement. The company issued 2,338,893 units at a price of C$1.06 per unit for total gross proceeds of C$2,479,227. Each unit consists of one common share and one common share purchase warrant (comprised of a Series A half-warrant and a Series B half-warrant). Each whole warrant allows the holder to purchase one additional common share at an exercise price of C$1.50 for 24 months. The proceeds will be used for general and administrative corporate purposes.

This financing is a necessary and expected event, making it routine but positive for the company's short-term survival. The Q1 financial statements (ending June 30, 2025) reported cash of C$2.89 million and a quarterly net loss of C$1.36 million, indicating a burn rate of approximately C$450,000 per month. This gave the company a cash runway of about six months, which would have ended around December 2025. This C$2.48 million financing extends the company's operational runway by another five to six months, pushing the immediate liquidity risk into mid-2026.

However, this is not a strategic investment but a survival financing. It is dilutive to existing shareholders, adding ~2.34 million shares immediately and a further ~2.34 million shares in potential overhang from the warrants. The financing price of C$1.06 was set when the stock was trading near its 52-week lows, which is not ideal.

The context for this financing is critical. Zentek has undergone a significant management and board shakeup, including the abrupt resignation of its CEO on September 3, 2025, who is now leading a private US-based company intended to be a licensee of Zentek's technology. This follows a prolonged and thus-far unsuccessful effort to meaningfully commercialize its flagship ZenGuard HVAC filter technology, despite a stream of positive technical and testing updates. The company's stock price has been in a steady decline for over a year, and it recently received another Nasdaq deficiency notice (August 2025) for trading below US$1.00.

While the company's other assets, particularly the Albany Graphite project, continue to deliver impressive technical results suggesting suitability for nuclear applications, these are long-term projects that do not solve the immediate cash burn issue. This financing simply buys more time for the new management to execute on commercialization or find a strategic partner. It does not fundamentally change the company's high-risk profile.

Zentek is an intellectual property development and commercialization company focused on nanotechnology. It operates through three main verticals: 1. ZenGuard: A patented graphene-silver coating technology with antimicrobial properties. The primary focus has been on application to HVAC filters and surgical masks to improve viral filtration efficiency without increasing energy consumption. Despite years of development and positive testing, commercialization has been slow. 2. Albany Graphite Corp.: A wholly-owned subsidiary that holds the Albany Graphite Project in Ontario. This is an advanced-stage exploration project for a unique igneous-hosted graphite deposit. Recent testing has shown the graphite can be purified to an ultra-high "five-nines" (99.999%+) level, meeting specifications for the demanding nuclear and battery anode markets. 3. Triera Biosciences Ltd.: A subsidiary developing an aptamer-based platform for rapid medical countermeasure discovery. It currently has government-funded projects targeting influenza viruses like H5N1.