NanoXplore Announces Closing of $25 Million Bought Deal Private Placement and Corporate Update

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISTRIBUTION WITH UNITED STATES NEWSWIRE SERVICES

MONTREAL, April 03, 2020 (GLOBE NEWSWIRE) -- NanoXplore Inc. ("NanoXplore" or the “Corporation”) (TSX-V: GRA) is pleased to announce the completion of the previously announced “bought deal” private placement for total gross proceeds of $25,000,040 (the “Offering”). The Offering was conducted by a syndicate of underwriters led by Echelon Wealth Partners Inc., and including Paradigm Capital Inc., Stifel Nicolaus Canada Inc., Raymond James Ltd., National Bank Financial Inc., Beacon Securities Limited and Cormark Securities Inc. (collectively the “Underwriters”). In connection with the Offering, the Corporation paid the Underwriters a cash commission equal to 5% of the gross proceeds of the Offering, other than in respect of Common Shares subscribed by certain investors’ (the President’s List), in which case the Underwriters received a cash commission equal to 2% of such amount.

The Offering was comprised of the issuance of 19,230,800 common shares (the “Common Shares”) in the Corporation, at a price of $1.30 per Common Share for gross proceeds of $25,000,040.

The Corporation intends to use the net proceeds of the Offering to further research initiatives, particularly related to the use of graphene in lithium ion (Li-ion) batteries, U.S. expansion, debt repayment, working capital and general corporate purposes. 

Dr Soroush Nazarpour, President and CEO of NanoXplore, commented:

“Our ability to raise funds in such a difficult market environment further illustrates the credibility of our graphene technology, our employees, and the true support of our new and existing shareholders. These funds will not only provide necessary fuel for growth but will also provide financial stability for the company as we enter an uncertain economic environment associated with Covid-19. I remain confident in our current business plan as we position ourselves to become a global leader in graphene powder production and sales.”

The Corporation would like to thank all participants that supported the Offering. This participation included, but was not limited to, Investissement Québec, Martinrea International Inc. and Business Development Bank of Canada (BDC). NanoXplore’s management also supported the financing.

BDC’s involvement is part of its $700-million, five-year commitment to help high-potential Canadian cleantech firms with market-ready technology or products meet the capital-intensive needs of scaling and achieving timely growth.