Zentek Announces US$30 Million At-The-Market Offering in the United States
Zentek (NASDAQ: ZTEK) has announced entering into an at-the-market (ATM) offering agreement to issue and sell common shares worth up to US$30 million in the United States. The offering will be conducted through Rodman & Renshaw as the exclusive sales agent.
The shares will be sold directly on the Nasdaq Capital Markets or through market makers, with no sales occurring in Canada. The offering will continue until reaching the US$30 million target or early termination. Share prices will vary based on prevailing market conditions.
The offering is made through a prospectus supplement dated March 3, 2025, to the company's U.S. registration statement on Form F-3, which was declared effective by the SEC on May 3, 2024.
Zentek (NASDAQ: ZTEK) ha annunciato di aver stipulato un accordo di offerta at-the-market (ATM) per emettere e vendere azioni ordinarie per un valore fino a 30 milioni di dollari USA negli Stati Uniti. L'offerta sarà condotta tramite Rodman & Renshaw come agente di vendita esclusivo.
Le azioni saranno vendute direttamente sul Nasdaq Capital Markets o tramite market maker, senza vendite che avverranno in Canada. L'offerta continuerà fino a raggiungere l'obiettivo di 30 milioni di dollari USA o fino a una cessazione anticipata. I prezzi delle azioni varieranno in base alle condizioni di mercato prevalenti.
L'offerta è effettuata tramite un supplemento di prospetto datato 3 marzo 2025, al modulo di registrazione della società negli Stati Uniti F-3, che è stato dichiarato efficace dalla SEC il 3 maggio 2024.
Zentek (NASDAQ: ZTEK) ha anunciado que ha celebrado un acuerdo de oferta at-the-market (ATM) para emitir y vender acciones ordinarias por un valor de hasta 30 millones de dólares EE. UU. en los Estados Unidos. La oferta se llevará a cabo a través de Rodman & Renshaw como agente de ventas exclusivo.
Las acciones se venderán directamente en el Nasdaq Capital Markets o a través de creadores de mercado, sin ventas que ocurran en Canadá. La oferta continuará hasta alcanzar el objetivo de 30 millones de dólares EE. UU. o hasta una terminación anticipada. Los precios de las acciones variarán según las condiciones del mercado prevalecientes.
La oferta se realiza a través de un suplemento de prospecto fechado el 3 de marzo de 2025, al formulario de registro de la compañía en EE. UU. F-3, que fue declarado efectivo por la SEC el 3 de mayo de 2024.
젠텍 (NASDAQ: ZTEK)은 미국에서 최대 3000만 달러 규모의 보통주를 발행하고 판매하기 위한 시장 내(ATM) 공모 계약을 체결했다고 발표했습니다. 이 공모는 로드먼 & 렌쇼 를 독점 판매 대리인으로 하여 진행됩니다.
주식은 나스닥 자본 시장에서 직접 판매되거나 시장 조성자를 통해 판매되며, 캐나다에서는 판매가 이루어지지 않습니다. 이 공모는 3000만 달러 목표에 도달하거나 조기 종료될 때까지 계속됩니다. 주가는 현재 시장 상황에 따라 달라질 것입니다.
이 공모는 2025년 3월 3일자로 날짜가 기재된 보충 설명서를 통해 이루어지며, 이는 SEC가 2024년 5월 3일에 효력을 인정한 회사의 미국 등록 서류 양식 F-3에 해당합니다.
Zentek (NASDAQ: ZTEK) a annoncé avoir conclu un accord d'offre sur le marché (ATM) pour émettre et vendre des actions ordinaires d'une valeur allant jusqu'à 30 millions de dollars US aux États-Unis. L'offre sera réalisée par l'intermédiaire de Rodman & Renshaw en tant qu'agent de vente exclusif.
Les actions seront vendues directement sur le Nasdaq Capital Markets ou par l'intermédiaire de teneurs de marché, sans ventes ayant lieu au Canada. L'offre se poursuivra jusqu'à atteindre l'objectif de 30 millions de dollars US ou jusqu'à une résiliation anticipée. Les prix des actions varieront en fonction des conditions du marché prévalentes.
L'offre est faite par le biais d'un supplément de prospectus daté du 3 mars 2025, au formulaire d'enregistrement de la société aux États-Unis F-3, qui a été déclaré effectif par la SEC le 3 mai 2024.
Zentek (NASDAQ: ZTEK) hat bekannt gegeben, dass es eine At-the-Market (ATM) Angebotsvereinbarung abgeschlossen hat, um Stammaktien im Wert von bis zu 30 Millionen US-Dollar in den Vereinigten Staaten auszugeben und zu verkaufen. Das Angebot wird über Rodman & Renshaw als exklusiven Verkaufsagenten durchgeführt.
Die Aktien werden direkt an den Nasdaq Capital Markets oder über Market Maker verkauft, wobei keine Verkäufe in Kanada stattfinden werden. Das Angebot wird fortgesetzt, bis das Ziel von 30 Millionen US-Dollar erreicht ist oder bis zur vorzeitigen Beendigung. Die Aktienpreise werden je nach den vorherrschenden Marktbedingungen variieren.
Das Angebot erfolgt über einen Prospektzusatz datiert 3. März 2025, zu dem US-Registrierungsformular F-3 des Unternehmens, das am 3. Mai 2024 von der SEC für wirksam erklärt wurde.
- Secured access to up to US$30M in potential funding
- Flexible financing structure through ATM offering
- No fixed discount to market price for share sales
- Potential dilution for existing shareholders
- No guaranteed amount of capital to be raised
- Share price may be pressured by new stock supply
Insights
Zentek's announcement of a
ATM offerings differ from traditional equity raises as they allow companies to sell newly issued shares incrementally at prevailing market prices rather than at a predetermined discount. While this provides Zentek with flexibility in timing and pricing, it creates ongoing uncertainty for investors regarding when and at what price dilution will occur.
The lack of specific details regarding use of proceeds beyond generic "corporate purposes" is particularly concerning. Without clarity on how this capital will generate returns that offset dilution, investors cannot properly evaluate the long-term value proposition. Most successful ATM offerings articulate clear investment theses – whether for R&D acceleration, market expansion, or strategic acquisitions.
Notably, Zentek has chosen to limit this offering to U.S. markets through Nasdaq, excluding Canadian markets where it also trades. This strategic decision likely aims to tap into deeper U.S. capital markets but also fragments their investor base across jurisdictions.
The timing and size of this capital raise – representing a significant percentage of their current market value – raises questions about the company's current cash position, burn rate, and financial runway. Companies typically pursue offerings of this relative magnitude when they require substantial capital for growth initiatives or to strengthen their balance sheet.
This
The flexibility of an ATM structure allows management to opportunistically raise capital as needed rather than accepting a single large dilution event. However, the substantial size relative to their market capitalization suggests this isn't merely supplemental funding but rather a core component of their forward strategy.
The critical missing element is transparency around capital allocation priorities. Effective IP commercialization requires focused investment in either developing internal capabilities or acquiring complementary technologies. Without articulated strategic objectives, shareholders cannot evaluate whether this dilution will drive proportionate value creation.
The decision to raise capital exclusively in U.S. markets indicates a potential shift in corporate focus, possibly presaging greater emphasis on U.S. commercial partnerships or market entry strategies. This jurisdictional approach might reflect differing investor appetites for technology development companies or regulatory considerations.
For a smaller-cap company like Zentek, balancing growth investment against dilution represents a delicate strategic challenge. While fresh capital could accelerate development timelines and expand competitive positioning, the substantial ownership dilution without clear articulation of value-creating initiatives represents a significant strategic communication gap that may impact investor confidence during the capital raising period.
Guelph, Ontario--(Newsfile Corp. - March 3, 2025) - Zentek Ltd. (NASDAQ: ZTEK) (TSXV: ZEN) ("Zentek" or the "Company"), an intellectual property technology development and commercialization company is pleased to announce it has entered into an at-the-market offering agreement (the "ATM Agreement"), dated as of today pursuant to which the Company proposes to issue and sell such number of common shares in the capital of the Company (the "Common Shares") as would result in aggregate gross proceeds to the Company of up to US
Rodman & Renshaw LLC is acting as the exclusive sales agent for the Offering.
Sales of Common Shares will be made through an "at-the-market offering" as defined in Rule 415(a)(4) promulgated under the U.S. Securities Act of 1933, as amended, made directly on the Nasdaq Capital Markets ("Nasdaq"), or any other recognized marketplace on which the Common Shares are listed, quoted or traded in the United States or through a market maker. No offers or sales of Common Shares will be made in Canada on the TSX Venture Exchange or other trading markets in Canada.
The Offering will remain in effect until the aggregate gross sales proceeds of Common Shares sold pursuant to the ATM Agreement equals US
The Common Shares will be issued pursuant to a prospectus supplement dated March 3, 2025 (the "Prospectus Supplement") to the base prospectus included in the Company's existing U.S. registration statement (the "Registration Statement") on Form F-3 (File No. 333-278886) dated April 23, 2024, as amended on April 24, 2024, and April 30, 2024, and declared effective by the United States Securities and Exchange Commission (the "SEC") on May 3, 2024. The Offering is being made only by means of the Prospectus Supplement forming part of the effective Registration Statement. The Prospectus Supplement relating to the Offering has been filed with the SEC. Electronic copies of the Prospectus Supplement may be obtained on the SEC's website at www.sec.gov and may also be obtained by contacting Rodman & Renshaw LLC at 600 Lexington Avenue, 32nd Floor, New York, NY 10022, by telephone at (212) 540-4414, or by email at info@rodm.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Zentek Ltd.
Zentek is an ISO 13485:2016 certified intellectual property technology company focused on the research, development and commercialization of novel products seeking to give the Company's commercial partners a competitive advantage by making their products better, safer, and greener.
Zentek's patented technology platform ZenGUARD™ is shown to have enhanced viral filtration efficiency for surgical masks and HVAC (heating, ventilation, and air conditioning) systems. Zentek's ZenGUARD™ production facility is located in Guelph, Ontario.
Zentek has a global exclusive license to the Aptamer-based platform technology developed by McMaster University which is being jointly developed Zentek and McMaster for both the diagnostic and therapeutic markets.
For further information:
Ryan Shacklock
Tel: (306) 270-9610
Email: rshacklock@zentek.com
To find out more about Zentek, please visit our website at www.Zentek.com. A copy of this news release and all material documents in respect of the Company may be obtained on Zentek's SEDAR+ profile at http://www.sedarplus.ca or on the SEC's website at www.sec.gov, as applicable.
Forward-Looking Statements
This news release contains forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding the anticipated use of proceeds from the Offering. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although Zentek believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Zentek disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/243177
FAQ
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