Nouveau Monde Strengthens Its Balance Sheet With a $16.5M Cash Investment by Pallinghurst’s Shareholders Following Exercise...
February 01 2021 - 3:00AM
Further advancement of its business plan, strong market conditions
and continued confidence and support from The Pallinghurst Group,
its largest investor, have enabled Nouveau Monde Graphite Inc.
(“Nouveau Monde” or the “Company”) (TSXV: NOU; OTCQX: NMGRF;
Frankfurt: NM9) to secure $16.5M from the exercise of
previously-issued warrants. As of today, management is of the view
that the Company is sufficiently funded for this year’s further
development of its mining and value-added projects with a cash
position as of February 1 of $34M. In addition, the Company expects
to raise an incremental amount of up to $5.75M in February,
assuming the successful closing of the private placement announced
on January 13, 2021.
Proceeds were received from the exercise of
warrants originally issued to Pallinghurst Graphite International
Limited (“Pallinghurst”). Pallinghurst transferred those warrants
to its shareholders, on January 29, 2021, with the objective to
offer the direct opportunity to invest further in Nouveau Monde
through the exercise of those warrants – and at the same time
strengthening the Company’s balance sheet. As of today, the Company
has received signed exercise forms from all of the transferee
warrant-holders, which include Messrs. Arne H. Frandsen and Chris
Shepherd, who are directors of the Company.
Arne H. Frandsen, Chairman of Nouveau
Monde and Managing Partner of The Pallinghurst Group,
commented: “Today’s $16.5M investment is
the fifth equity investment Pallinghurst and its investors have
made into Nouveau Monde since 2019. It should be seen as a
manifestation of our firm commitment and trust in the Company, its
business plan, management team as well as Québec as the logical
place for the North American battery materials hub.”
Eric Desaulniers, President and Chief
Executive Officer of Nouveau Monde,
added: “Pallinghurst’s confidence in our
value proposition and unwavering support for our business strategy
are testaments to the alignment of our respective visions for a
cleaner future powered by sustainably and ethically sourced
minerals to be used in EVs and renewable energy storage. Today’s
equity investment will support the funding required, as we move
forward on a number of deliverables in the coming months. This
includes the ramp up of our engineering and preparation for the
Matawinie mine construction as well as the initial production of
purified graphite-based materials at our Bécancour facility. With a
strengthened balance sheet, we can continue to support the
disciplined execution of our activities and strategy.”
Today’s announcement covers the exercise of
75,000,000 warrants, with each such warrant being exercisable for
one common share of the Company, for net proceeds of $16,500,000.
On January 22, 2021, Pallinghurst filed a Form 45-102F1 disclosing
its intention to distribute the warrants to its shareholders on a
pro-rata basis. Following the transfer of the warrants,
Pallinghurst, as of today, beneficially owns 55,495,667 common
shares of the Company representing 15.2% of the issued and
outstanding common shares, and holds a $15-million convertible
bond. Assuming the conversion in whole of the convertible bond,
Pallinghurst would own 130,495,667 common shares representing 29.7%
of the issued and outstanding common shares.
The proceeds of the warrant exercise will be
used for the Bécancour value added graphite project development,
the Matawinie mine and concentrator detailed engineering, and
corporate general and administrative expenses.
About Nouveau Monde
Nouveau Monde is striving to become a key
element in the sustainable energy revolution. The Company is
working towards developing a fully-integrated source of green
battery anode material in Québec, Canada. Targeting full-scale
commercial operations by 2023, the Company is developing advanced
carbon-neutral graphite-based material solutions for the growing
lithium-ion and fuel cell markets. With low-cost operations and
high ESG standards, Nouveau Monde aspires to become a strategic
supplier to the world’s leading battery and auto manufacturers,
ensuring robust and reliable advanced material, while guaranteeing
supply chain traceability.
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Cautionary Note Regarding
Forward-Looking Information All statements, other than
statements of historical fact, contained in this press release
including, but not limited to the private placement and its
anticipated closing, the expected use of proceeds from the exercise
of the warrants, upcoming corporate milestones, and the “About
Nouveau Monde” paragraph which essentially describes the Company’s
outlook and objectives, constitute “forward-looking information” or
“forward-looking statements” within the meaning of certain
securities laws, and are based on expectations, estimates and
projections as of the time of this press release. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Company as of
the time of such statements, are inherently subject to significant
business, economic and competitive uncertainties and contingencies.
These estimates and assumptions may prove to be incorrect.
Moreover, these forward-looking statements were based upon various
underlying factors and assumptions, including the Company’s
business prospects and opportunities, and are not guarantees of
future performance.
By their very nature, forward-looking
information and statements are subject to known or unknown risks
and uncertainties that may cause actual results to differ
materially from those anticipated or implied in the forward-looking
information and statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the ability of the Company to successfully
implement its strategic initiatives and whether such strategic
initiatives will yield the expected benefits, the operating
performance of the Company’s assets and businesses, competitive
factors in the graphite mining and production industry, changes in
laws and regulations affecting the Company’s businesses,
technological developments, the impacts of the global COVID-19
pandemic and the governments’ responses thereto, and general
economic conditions. Unpredictable or unknown factors not discussed
in this Cautionary Note could also have material adverse effects on
forward-looking statements.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management’s expectations and plans relating to the future. The
Company disclaims any intention or obligation to update or revise
any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Neither the 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.
Further information regarding Company is
available in the SEDAR database (www.sedar.com) and on the
Company’s website at: www.NouveauMonde.group
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