NEO Battery Announces Non-Brokered Private Placement Offering

Executive Summary

• NEO Battery Materials Ltd. announced a non‑brokered private placement of up to 11,666,667 units at CAD $0.60 per unit, targeting gross proceeds of approximately CAD $7 million.
• Each unit consists of one common share and one non‑transferable warrant exercisable at CAD $0.85 for 36 months.
• Net proceeds are earmarked for expanding battery manufacturing equipment at the Gimje factory and for general working capital.

Key Details

• Units Offered: Up to 11,666,667 units (each = 1 common share + 1 warrant).
• Price per Unit: CAD $0.60.
• Aggregate Gross Proceeds: Approximately CAD $7 million (maximum).
• Warrant Terms: One‑for‑one warrant exercisable at CAD $0.85 per share, valid for 36 months from closing.
• Finder Compensation: Up to 6% cash commission of gross proceeds and/or finder’s options up to 6% of total units issued.
• Use of Proceeds:
• Installation of additional battery manufacturing equipment (formation lines, cylindrical/prismatic cell assembly) at the operational Gimje factory and expansion site.
• General working capital purposes.
• Offering Structure: Non‑brokered private placement to purchasers outside Canada under OSC 72‑503 exemption; securities not subject to resale restrictions.
• Regulatory Notes: Not a Related Party Transaction under MI 61‑101; subject to final acceptance by the TSX Venture Exchange.
• Legal Disclaimer: Offer not made in the United States; securities not registered under U.S. securities laws.

Notable Quotes

“This financing will enable us to accelerate the deployment of additional manufacturing capacity at our Gimje facility, supporting our growth strategy and strengthening our position in the silicon‑enhanced battery market.” – Spencer Huh, Director, President & CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.