NEO Battery Materials Announces Closing of First Tranche of Private Placement

Rhea-AI Summary

NEO Battery Materials (NBMFF) has completed the first tranche of its non-brokered private placement, raising CAD $200,000 through the issuance of 400,000 units at CAD $0.50 per unit. Each unit includes one common share and one warrant exercisable at CAD $0.75 for 24 months. The proceeds will fund silicon battery R&D scaling, manufacturing equipment purchases, and working capital. The company paid finders CAD $14,000 and issued 28,000 warrants exercisable at CAD $0.50. NEO Battery Materials specializes in developing silicon anode materials for lithium-ion batteries, utilizing a patent-protected, low-cost manufacturing process to enable longer-running and ultra-fast charging capabilities for EVs and energy storage systems.

Positive

• Successful closing of first tranche private placement raising CAD $200,000 for operational expansion
• Funds allocated to scale up silicon battery R&D and production capabilities
• Company owns patent-protected, low-cost manufacturing process for silicon anode materials
• Strategic focus on high-growth EV and energy storage markets

Negative

• Small offering size of only CAD $200,000 may limit growth potential
• Dilution of existing shareholders through new share issuance
• Warrant exercise price at CAD $0.75 could lead to future dilution if exercised

TORONTO, June 17, 2025 (GLOBE NEWSWIRE) -- NEO Battery Materials Ltd. (“NEO” or the “Company”) (TSXV: NBM) (OTC: NBMFF), a low-cost silicon anode materials developer that enables longer-running, rapid-charging lithium-ion batteries, is pleased to announce the closing of the first tranche (the “First Tranche”) of a non-brokered private placement (the “Offering”) through the issuance of 400,000 units (each, a “Unit”) at a price of $0.50 CAD per Unit (the “Offering Price”) for aggregate gross proceeds of $200,000 CAD.

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 whole 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 from the closing date of the Offering. The use of proceeds will be allocated towards (i) scaling-up silicon battery research and development and production for large-scale battery manufacturing and testing, (ii) purchases of key manufacturing equipment, and (iii) working capital and general corporate overhead.

In connection with the Offering, the Company paid to the finders: (i) an aggregate cash commission of $14,000 CAD, and (ii) 28,000 non-transferable warrants of the Company exercisable at an exercise price of $0.50 CAD for a period of 24 months from the closing date of the Offering. The Units have been offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Ontario Securities Commission Rule 72-503 – Distributions Outside Canada (“OSC 72-503”), and accordingly, the securities issued pursuant to OSC 72-503 will not be subject to resale restrictions. The Offering is not a Related Party Transaction as defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and therefore is not subject to TSXV Policy 5.9. The Offering is subject to final acceptance of the TSXV.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein the United States. 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.

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. 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 Directors
Spencer Huh
Director, President, and CEO

For Investor Relations, PR & More Information:
info@neobatterymaterials.com

T: +1 (437) 451-7678

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Generally, such forward-looking information can be identified notably by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", 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". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: volatile stock prices; the general global markets and economic conditions; the possibility of write-downs and impairments; the risk associated with the research and development of advanced and battery-related technologies; the risk associated with the effectiveness and feasibility of technologies that have not yet been tested or proven on commercial scale; manufacturing process scale-up risks, including maintaining consistent material quality, production yields, and process reproducibility at a commercial scale; compatibility issues with existing battery chemistries and unforeseen the risks associated with entering into and maintaining collaborations, joint ventures, or partnerships with battery cell manufacturers, original equipment manufacturers, and various companies in the global battery supply chain; the risks associated with the construction, completion, and financing of commercial facilities including the Windsor and South Korean facilities; the risks associated with supply chain disruptions or cost fluctuations in raw materials, processing chemicals, and additive prices, impacting production costs and commercial viability; the risks associated with uninsurable risks arising during the course of research, development and production; competition faced by the Company in securing experienced personnel and financing; access to adequate infrastructure and resources to support battery materials research and development activities; the risks associated with changes in the technology regulatory regime governing the Company; the risks associated with the timely execution of the Company’s strategies and business plans; the risks associated with the lithium-ion battery industry’s demand and adoption of the Company’s silicon anode technology; market adoption and integration challenges, including the difficulty of incorporating silicon anodes within battery manufacturers and OEMs systems; the risks associated with the various environmental and political regulations the Company is subject to; risks related to regulatory and permitting delays; the reliance on key personnel; liquidity risks; the risk of litigation; risk management; and other risk factors as identified in the Company’s recent Financial Statements and MD&A and in recent securities filings for the Company which are available on www.sedarplus.ca. Forward-looking information is based on assumptions management believes to be reasonable at the time such statements are made, including but not limited to, continued R&D and commercialization activities, no material adverse change in precursor prices, development and commercialization plans to proceed in accordance with plans and such plans to achieve their stated expected outcomes, receipt of required regulatory approvals, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking information. Such forward-looking information has been provided for the purpose of assisting investors in understanding the Company's business, operations, research and development, and commercialization plans and may not be appropriate for other purposes. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this presentation, and the Company does not undertake to update such forward-looking information except in accordance with applicable securities laws.

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.

FAQ

How much did NEO Battery Materials (NBMFF) raise in their first tranche private placement?

NEO Battery Materials raised CAD $200,000 through the issuance of 400,000 units at CAD $0.50 per unit in the first tranche of their private placement.

What is the warrant exercise price and duration for NBMFF's private placement?

Each warrant is exercisable at CAD $0.75 per share for a period of 24 months from the closing date of the offering.

How will NEO Battery Materials use the proceeds from the private placement?

The proceeds will be used for scaling-up silicon battery R&D and production, purchasing key manufacturing equipment, and working capital and general corporate overhead.

What is NEO Battery Materials' main product technology?

NEO Battery Materials develops silicon anode materials for lithium-ion batteries using a patent-protected, low-cost manufacturing process that enables longer-running and ultra-fast charging capabilities.

What finder's fees did NBMFF pay for the private placement?

NEO Battery Materials paid CAD $14,000 in cash commission and issued 28,000 non-transferable warrants exercisable at CAD $0.50 for 24 months.