Zentek Announces Non-Brokered Private Placement of Units for up to $2,000,000

Executive Summary

• Zentek Ltd. announced a non‑brokered private placement of up to 1,886,792 units at $1.06 per unit, targeting gross proceeds of $2 million for working capital and general corporate purposes.
• Each unit includes one common share, half of a Series A warrant (exercise price $1.50, 24‑month term) and half of a Series B warrant (exercise price $2.00, 36‑month term), with acceleration provisions tied to TSXV share price performance.
• Concurrently, the company granted stock options for 979,000 common shares at $1.06 per share (five‑year term) and restricted share units for 779,000 shares, vesting over 2026–2028, with a four‑month hold period for officers/directors.

Key Details

• Offering Size: Up to $2 million (1,886,792 units @ $1.06).
• Unit Composition:
• 1 Common Share
• 0.5 × Series A Warrant (exercise $1.50, 24‑month expiry)
• 0.5 × Series B Warrant (exercise $2.00, 36‑month expiry)
• Series A Acceleration: If TSXV price ≥ $2.00 for 10 consecutive days between 4 months + 1 day and expiry, acceleration to a date no earlier than 30 days after notice.
• Series B Acceleration: If TSXV price ≥ $3.00 for 10 consecutive days between 6 months and expiry, acceleration to a date no earlier than 30 days after notice.
• Closing Conditions: Subject to corporate and regulatory approvals, including TSXV approval; securities subject to a hold period of four months plus one day.
• Option Grants (effective Oct 1 2025):
• 979,000 options at $1.06 per share, five‑year term. Vesting for officers/directors: 1/3 on grant, 1/3 on Oct 1 2026, 1/3 on Oct 1 2027; for employees: 1/4 each on grant, Oct 1 2026, Oct 1 2027, Oct 1 2028.
• 779,000 restricted share units vesting on Oct 1 2026.
• Hold Period for Officer/Director Securities: Four months from the date of grant.

Notable Quotes

(No direct quotes were provided in the release.)