Zentek arranges $2-million private placement

Executive Summary

• Zentek Ltd. announced a non‑brokered private placement of up to 1,886,792 units for gross proceeds of up to $2 million at $1.06 per unit.
• Each unit includes one common share and two half‑share purchase warrants (Series A and Series B) with defined exercise prices and acceleration provisions tied to TSX‑V price performance.
• Concurrently, the company granted stock options for 979,000 shares at $1.06 each (five‑year term) and restricted share units for 779,000 shares, both subject to hold periods.

Key Details

• Offering Size: Up to $2 million; up to 1,886,792 units at $1.06 per unit.
• Unit Composition:
• 1 common share
• ½ of a Series A warrant (exercise price $1.50, 24‑month term)
• ½ of a Series B warrant (exercise price $2.00, 36‑month term)
• Warrant Acceleration Triggers:
• Series A: If TSX‑V price ≥ $2 for 10 consecutive trading days between 4 months + 1 day and expiry, expiry may be accelerated to a date no earlier than 30 days after notice.
• Series B: If TSX‑V price ≥ $3 for 10 consecutive trading days between 6 months and expiry, expiry may be accelerated similarly.
• Use of Proceeds: Working capital and general corporate purposes.
• Closing Conditions: Subject to all required corporate and regulatory approvals, including TSX‑V approval; securities subject to a hold period of four months + 1 day.
• Stock Option Grant (effective 2025‑10‑01):
• 979,000 common shares at $1.06 per share, five‑year term.
• Vesting for officers/directors: 1/3 on grant date, 1/3 on 2026‑10‑01, 1/3 on 2027‑10‑01.
• Vesting for employees: ¼ on each of grant date, 2026‑10‑01, 2027‑10‑01, 2028‑10‑01.
• Restricted Share Units: 779,000 RSUs vesting on 2026‑10‑01.
• Hold Period for Officer/Director Securities: Four months + 1 day from grant date.

Notable Quotes

(No direct quotes provided in the release.)