Zentek Announces Upsizing of Non-Brokered Private Placement to up to $2,500,000

Executive Summary

• Zentek Ltd. increased its previously announced non‑brokered private placement to up to 2,358,490 units at $1.06 per unit, targeting gross proceeds of up to $2.5 million.
• Proceeds will be used for working capital and general corporate purposes.
• Each unit includes one common share and half a warrant each of two series (Series A and Series B) with defined exercise prices and acceleration provisions tied to the TSX Venture Exchange share price.

Key Details

• Offering Size: Up to 2,358,490 units (previously announced amount increased).
• Price per Unit: $1.06.
• Maximum Gross Proceeds: $2,500,000.
• Unit Composition:
• 1 common share.
• ½ of a Series A Common Share purchase warrant.
• ½ of a Series B Common Share purchase warrant.
• Series A Warrant:
• Exercise price: $1.50 per common share.
• Term: 24 months from closing date.
• Acceleration trigger: If TSXV closing price ≥ $2.00 for 10 consecutive trading days, between day (Closing + 4 months + 1 day) and expiry, the expiry may be accelerated to a date no earlier than 30 days after notice.
• Series B Warrant:
• Exercise price: $2.00 per common share.
• Term: 36 months from closing date.
• Acceleration trigger: If TSXV closing price ≥ $3.00 for 10 consecutive trading days, between day (Closing + 6 months) and expiry, the expiry may be accelerated to a date no earlier than 30 days after notice.
• Use of Proceeds: Working capital and general corporate purposes.
• Regulatory Conditions: Closing subject to receipt of all necessary corporate and regulatory approvals, including TSXV approval.
• Holding Period: All securities issued are subject to a hold period of four months plus one day from issuance and applicable resale rules.
• U.S. Offering Disclaimer: The securities are not registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an exemption.

Notable Quotes

(No executive quotes were provided in the release.)