TORONTO, June 12,
2023 /CNW/ - Neo Performance Materials Inc.
("Neo" or the
"Company") (TSX:
NEO) has entered into a subscription
agreement providing for the purchase of up to US$84.7 million of ordinary and preference shares
of its wholly-owned direct subsidiary, Magnet Ventures Pte Ltd.
("Magnet Ventures") over the course of several
tranches, and subject to certain conditions precedent. Magnet
Ventures is the sole shareholder of NPM Narva OU. The first tranche
in the amount of US$15.4 million is
expected to be funded no later than mid-July
2023. Concurrent with Neo's investment, a third-party
minority shareholder will also invest in Magnet Ventures. Following
the completion of the funding of Magnet Ventures, Neo will hold a
70% interest in the outstanding ordinary shares of Magnet Ventures
and the minority shareholder will hold a 30% interest. Concurrent
with the entering into of the subscription agreement, Neo and the
minority shareholder of Magnet Ventures entered into a
shareholders' agreement in regards to Magnet Ventures which
provides for the terms of the relationship and the operating
parameters of the company, including pre-emptive rights, rights of
first refusal on transfers of shares, restrictive covenants, and
restrictions on the transfer of shares of Magnet Ventures. The
shareholders' agreement becomes effective on the completion of the
first tranche of funding.
About Neo Performance
Materials
Neo manufactures the building blocks of many modern
technologies that enhance efficiency and sustainability. Neo's
advanced industrial materials - magnetic powders and magnets,
specialty chemicals, metals, and alloys - are critical to the
performance of many everyday products and emerging technologies.
Neo's products help to deliver the technologies of tomorrow to
consumers today. The business of Neo is organized along three
segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo
is headquartered in Toronto, Ontario,
Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that
includes 9 manufacturing facilities located in China, the United
States, Germany,
Canada, Estonia, and Thailand, as well as one dedicated research
and development centre in Singapore. For more information, please
visit www.neomaterials.com.
Cautionary Statements
Regarding Forward-Looking Statements
This news release may contain "forward-looking
information" within the meaning of applicable Canadian securities
legislation. Generally, but not always, forward-looking information
and statements can be identified by the use of words such
as "plans", "expects", "is expected", "budget",
"scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or
the negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur"
or "be achieved" or the negative connotation thereof. Specific
forward-looking statements in this news release include, but are
not limited to, the continued expansion of Neo's operations and
succession planning-related matters. In making the forward-looking
information in this news release, the Company has applied certain
factors and assumptions that are based on its current beliefs as
well as assumptions made by and information currently available to
the Company. Although the Company considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect, and the forward-looking information in this
release are subject to numerous risks, uncertainties and other
factors that may cause future results to differ materially from
those expressed or implied in such forward-looking information.
Readers are cautioned not to place undue reliance on
forward-looking information. The Company does not intend, and
expressly disclaims any intention or obligation to, update or
revise any forward-looking information whether as a result of new
information, future events or otherwise, except as required by law.
For more information on Neo, investors should review Neo's
continuous disclosure filings that are available under Neo's
profile
at www.sedar.com.
SOURCE Neo Performance Materials, Inc.