Pallinghurst Increases its Interest in Nouveau Monde to 21% – Showing Further Commitment to the Company
Nouveau Monde Graphite Inc. (NYSE: NMG) announced the conversion of a C$15 million secured convertible bond held by Pallinghurst Graphite International Limited into common shares. This conversion, occurring in two tranches, results in Pallinghurst owning approximately 21% of the company's shares. Additionally, Nouveau Monde settled C$1,900,463 of accrued interest by issuing 220,471 common shares at C$8.62 each. The move enhances the company's flexibility for project financing as it aims to lead in sustainable battery anode material production.
- Pallinghurst's conversion of the C$15 million convertible bond demonstrates strong investor confidence.
- The release of security related to the bond enhances flexibility for project financing.
- None.
Importantly, all related security to secure the obligations of the Company under the Convertible Bond will be released and discharged, which will provide the Company with increased flexibility for its project financing initiatives, as it moves towards the next stage of development.
The Convertible Bond was converted in two tranches: 1,875,000 common shares were received by Pallinghurst on exercise of the first tranche and distributed by Pallinghurst to its investors, which include Messrs. Arne H Frandsen and
In addition, and pursuant to the terms of the Convertible Bond, the Company has elected to settle the accrued and unpaid interest owing under the Convertible Bond of
Following the exercise of the Convertible Bond, the distribution to Pallinghurst investors, and receipt of the Interest Shares, together with its existing holdings, Pallinghurst, together with its subsidiary will own 11,541,014 common shares of the Company representing approximately
Arne H Frandsen, Managing Partner and Co-Founder of
The payment of interest in the form of Interest Shares of the Company takes place in favor of Pallinghurst, a holder of more than
The issuance of Interest Shares is conditional upon the approval of the
A material change report relating to this transaction with a related party will be filed by Nouveau Monde no later than 21 days prior to the date on which the Interest Shares are expected to be issued as the conditions in connection with the issuance of the Interest Shares were not determined.
About Nouveau Monde
Nouveau Monde is striving to become a key contributor to the sustainable energy revolution. The Company is working towards developing a fully integrated source of carbon-neutral battery anode material in
www.NMG.com
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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 those describing the issuance of Interest Shares to Pallinghurst as settlement of debts owed, the continuity of Pallinghurst’s support, the Company’s goals and objectives, the Convertible Bond’s discharge and release, the Company’s financing optionality, Pallinghurst’s share ownership and those statements which are discussed under the “About Nouveau Monde” paragraph and elsewhere in the press release which essentially describe 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 current technological trends, the business relationship between the Company and its stakeholders, the ability to operate in a safe and effective manner, the timely delivery and installation of the equipment supporting the production, the Company’s business prospects and opportunities and estimates of the operational performance of the equipment, and are not guarantees of future performance.
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, delays in the scheduled delivery times of the equipment, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining the necessary permits, 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, political and social acceptability risk, environmental regulation risk, currency and exchange rate risk, technological developments, the impacts of the global COVID-19 pandemic and the governments’ responses thereto, and general economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. 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
Further information regarding the Company is available in the SEDAR database (www.sedar.com), and for
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VP Communications & ESG Strategy
+1-450-757-8905 #140
jpaquet@nmg.com
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FAQ
What is the significance of Pallinghurst converting the C$15 million convertible bond for Nouveau Monde Graphite (NMG)?
How many shares did Pallinghurst receive after converting the bond for NMG?
What percentage of Nouveau Monde shares does Pallinghurst own after the bond conversion?
What is the current price of the Interest Shares issued by Nouveau Monde Graphite (NMG)?