NEO Battery Materials Announces Closing of Non-Brokered Private Placement Pursuant to Listed Issuer Financing Exemption
November 27 2023 - 3:32PM
(TSXV: NBM) (OTCQB: NBMFF)
NEO Battery Materials Ltd.
(“NEO” or the
“Company”),
a low-cost silicon anode materials developer that enables
longer-running, rapid-charging lithium-ion batteries, is pleased to
announce that, effectively on November 24, 2023, the Company had
closed the non-brokered private placement of 11,386,860 units (the
“Units”) of the Company at the price of $0.32 CAD
per Unit (the “Offering Price”) for gross proceeds
of $3,643,795.20 CAD (the “Offering”).
Each Unit consists of one common share of the
Company (each, a “Common Share”) and one
non-transferable Common Share purchase warrant (each, a
“Warrant”). Each Warrant will be exercisable to
acquire one Common Share of the Company at an exercise price of
$0.75 CAD for a period of 24 months after the closing date or until
November 24, 2025.
During the period of 24 months after the closing
date, in the event that the daily volume-weighted average trading
price (or closing bid price on days when there are no trades) of
the Common Shares on the TSX Venture Exchange
(“TSXV” or the “Exchange”) is at
least $1.00 CAD per Common Share for a minimum of 15 consecutive
trading days, the Company may issue a written notice or press
release (a “Warrant Acceleration Notice”) to
holders of the Warrants requiring each holder to exercise the
Warrants within 30 days following the date of delivery of the
Warrant Acceleration Notice.
Subject to compliance with applicable regulatory
requirements and in accordance with National Instruments 45-106 –
Prospectus Exemptions (“NI 45-106”), the Offering
was made to purchasers resident in Canada (except Quebec) and/or
other qualifying jurisdictions pursuant to the listed issuer
financing exemption under Part 5A.2 of NI 45-106 (the
“Listed Issuer Financing Exemption”). The
securities issued pursuant to the Listed Issuer Financing Exemption
will not be subject to resale restrictions in accordance with
applicable Canadian securities laws, and the Units issued will be
immediately freely tradeable. There is an offering document related
to the Offering that can be accessed under the Company’s profile at
www.sedarplus.ca and at www.neobatterymaterials.com. The Offering
remains subject to the final acceptance of the TSXV.
In connection with the Offering, the Company
paid to the finders: (i) an aggregate cash commission of $9,352
CAD, and (ii) 29,225 non-transferable warrants of the Company
exercisable at any time until November 24, 2025, at an exercise
price of $0.75 CAD. The Company will use the proceeds of this
Offering to expand the manufacturing capacity for NEO’s silicon
anodes at Gyeonggi Technopark in Ansan Science Valley. The funds
allocated will also be utilized to increase the headcount of
research engineers to expand overall productivity toward striking
advanced agreements with global EV battery supply chain
parties.
The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the “1933 Act”) or any state securities
laws and may not be offered or sold within the United States or to,
or for account or benefit of, U.S. Persons (as defined in
Regulation S under the 1933 Act) unless registered under the 1933
Act and applicable state securities law, or an exemption from such
registration requirements is available.
Mr. Spencer Huh, President & CEO of NEO,
commented, “Despite being in one of the most dismally performing
financial markets, we have been successful in completing our
private placement due to the ever-increasing demand for NEO’s
proprietary silicon anodes, NBMSiDE®, by the global electric
vehicle industry. Over the past months, we have expanded
relationships through NBMSiDE® evaluations to shorten the timeline
for commercial-level battery integration. With new supportive
shareholders who have invested in the fundamental developments and
with new talented personnel like Dr. J. H. Woo, CSO of NEO, we are
confident in achieving the next milestones with global players for
maximal value creation.”
Trading Resumption UpdateAs a
Change of Business requirement in accordance with TSXV Policy 5.2,
the Exchange has requested the Company to file an updated filing
statement (the “Filing Statement”) pursuant to
TSXV Form 3D2 – Information Required in a Filing Statement for a
Change of Business. The Filing Statement will retain comprehensive
information on the Company, including management’s revised
strategic objectives and milestones for capital-efficient
commercialization through advanced agreements with global electric
vehicle battery supply chain companies.
Upon the filing of the Filing Statement and the
satisfaction of two minor administrative items with the TSXV, the
Change of Business transaction is expected to be completed, and the
trading halt will be lifted in two business days upon TSXV’s final
acceptance of the Change of Business.
About NEO Battery Materials
Ltd.NEO
Battery Materials is a Canadian battery
materials technology company focused on developing silicon anode
materials for lithium-ion batteries in electric vehicles,
electronics, and energy storage systems. With a patent-protected,
low-cost manufacturing process, NEO Battery enables longer-running
and ultra-fast charging batteries compared to existing
state-of-the-art technologies. Building the first commercial plant
in South Korea, the Company aims to be a globally-leading producer
of silicon anode materials for the electric vehicle and energy
storage industries. For more information, please visit the
Company’s website at: https://www.neobatterymaterials.com/.
On Behalf of the Board of
DirectorsSpencer HuhDirector, President and
CEOshuh@neobatterymaterials.com
For Investor Relations, PR & More
Information:Danny HuhSVP, Strategy &
Operationsdhuh@neobatterymaterials.com
This news release includes certain
forward-looking statements as well as management's objectives,
strategies, beliefs and intentions. Forward-looking statements are
frequently identified by such words as "may", "will", "plan",
"expect", "anticipate", "estimate", "intend" and similar words
referring to future events and results. Forward-looking statements
are based on the current opinions and expectations of management.
All forward-looking information is inherently uncertain and subject
to a variety of assumptions, risks and uncertainties, including the
speculative nature of mineral exploration and development,
fluctuating commodity prices, the effectiveness and feasibility of
technologies which have not yet been tested or proven on a
commercial scale, competitive risks and the availability of
financing, as described in more detail in our recent securities
filings available at www.sedarplus.com. Actual events or
results may differ materially from those projected in the
forward-looking statements and we caution against placing undue
reliance thereon. We assume no obligation to revise or update these
forward-looking statements except as required by applicable
law.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
NEO Battery Materials (TSXV:NBM)
Historical Stock Chart
From Apr 2024 to May 2024
NEO Battery Materials (TSXV:NBM)
Historical Stock Chart
From May 2023 to May 2024