NEO Battery Materials Announces Closing of Non-Brokered Private Placement

Rhea-AI Summary

NEO Battery Materials (TSXV: NBM) (OTC: NBMFF) has closed a non-brokered private placement of 2,000,000 units at $0.40 CAD per unit, raising gross proceeds of $800,000 CAD. Each unit includes one common share and one-half warrant, with each whole warrant exercisable at $0.75 CAD for 24 months. The proceeds will fund R&D activities for the company's silicon anode technology and working capital. No finder's fees will be paid, and shares are subject to a four-month plus one-day hold period. The offering requires final TSXV acceptance.

Positive

• Successfully raised CAD 800,000 through private placement
• No finder's fees required, reducing transaction costs

Negative

• Potential dilution for existing shareholders through issuance of 2,000,000 new units
• Additional dilution possible if warrants are exercised

TORONTO, Oct. 28, 2024 (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 that it has closed the non-brokered private placement (the “Offering”) of 2,000,000 units (the “Units”) of the Company at the price of $0.40 CAD per Unit (the “Offering Price”) for gross proceeds of $800,000 CAD.

Each Unit consists of one common share of the Company (each, a “Common Share”) and one-half of 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.

NEO intends to use the proceeds from this financing for research and development activities of the Company’s silicon anode technology and general working capital purposes. No finders’ fees will be paid in connection with the Offering, and the Common Shares are subject to a four month plus one day hold period from the date of issuance. 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
Tel: +1-437-451-7678

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

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, but not limited to, 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", "be achieved", and similar words referring to future events and results. 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: (i) volatile stock prices; (ii) the general global markets and economic conditions; (iii) the possibility of write-downs and impairments; (iv) the risk associated with the research and development of advanced technologies; (v) the risk associated with the effectiveness and feasibility of technologies that have not yet been tested or proven on commercial scale; (vi) the risks associated with entering into joint ventures, collaboration agreements, joint development agreements, and similar commercial agreements; (vii) fluctuations in input precursor prices; (viii) the risks associated with uninsurable risks arising during the course of research, development and production; (ix) competition faced by the resulting issuer in securing experienced personnel and financing; (x) access to adequate infrastructure to support battery materials research and development activities; (xi) the risks associated with changes in the technology regulatory regime governing the Company; (xii) the risks associated with the various environmental regulations the Company is subject to; (xiii) risks related to regulatory and permitting delays; (xiv) the reliance on key personnel; (xv) liquidity risks; (xvi) the risk of litigation; and (xvii) risk management, as described in more detail in our recent securities filings available at www.sedarplus.com. 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 research and development activities, no material adverse change in precursor prices and development 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. 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.

FAQ

How much did NEO Battery Materials (NBMFF) raise in its October 2024 private placement?

NEO Battery Materials raised CAD 800,000 through a non-brokered private placement of 2,000,000 units at CAD 0.40 per unit.

What is the exercise price and term for the warrants in NEO Battery Materials' (NBMFF) October 2024 private placement?

The warrants have an exercise price of CAD 0.75 and are exercisable for a period of 24 months from the closing date.

How will NEO Battery Materials (NBMFF) use the proceeds from its October 2024 private placement?

The proceeds will be used for research and development activities of the company's silicon anode technology and general working capital purposes.