NEO Battery Closes Upsized Non-Brokered Private Placement Offering of $5.5 Million

Executive Summary

• NEO Battery Materials Ltd. closed an upsized non‑brokered private placement of 10,785,836 units at CAD $0.51 per unit, generating approximately CAD $5.5 million in gross proceeds.
• Each unit includes one common share and one non‑transferable warrant exercisable at CAD $0.80 for up to 36 months (until September 29, 2028).
• Net proceeds are earmarked for securing South Korean battery component and cell equipment, purchasing scale‑up silicon‑battery development equipment, and general working capital/corporate overhead.

Key Details

• Units Issued: 10,785,836 units at CAD $0.51 per unit.
• Aggregate Gross Proceeds: Approximately CAD $5,500,000.
• Unit Composition: 1 common share + 1 non‑transferable warrant (exercisable for 1 additional common share).
• Warrant Terms: Exercise price CAD $0.80 per share; exercisable for 36 months from closing or until September 29, 2028.
• Use of Proceeds:
  1. Secure South Korean battery components and cell equipment/facilities for drone, UAV, and robotics batteries.
  2. Purchase scale‑up equipment for silicon battery material development.
  3. Working capital and general corporate overhead.
• Commission Paid: CAD $203,806.77 to eligible finders.
• Regulatory Notes: Offering made under OSC Rule 72‑503 exemption (distributions outside Canada); not a related‑party transaction; subject to final TSXV acceptance.
• Resale Restrictions: Units issued pursuant to the exemption are not subject to resale restrictions.

Notable Quotes

(No direct quotes were provided in the release.)