Nouveau Monde Announces Closing of Oversubscribed Bought Deal Public Offering

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MONTREAL, Jan. 20, 2021 (GLOBE NEWSWIRE) -- Nouveau Monde Graphite Inc. (“Nouveau Monde” or the “Corporation”) (TSXV: NOU; OTCQX: NMGRF; Frankfurt: NM9) is pleased to announce that it has closed its bought deal public offering of C$17 million (the “Public Offering”), which forms part of the previously announced C$20 million financing. The Corporation expects the previously-announced C$5 million private placement launched concurrently with the Public Offering to close in early February 2021.

The Public Offering was conducted on a bought deal basis through BMO Capital Markets as sole underwriter (“BMO”), by way of a prospectus supplement dated January 15, 2021 (the “Prospectus Supplement”) to the Corporation’s short form base shelf prospectus dated January 10, 2019 (the “Base Shelf Prospectus”).

Pursuant to the Public Offering, the Corporation issued a total of 11,896,750 Common Shares at a price of C$1.45 per Common Share (the “Offering Price”) for gross proceeds to the Corporation of C$17,250,287.50, which includes the exercise, in full, by BMO of the over-allotment option granted by the Corporation to purchase an additional 1,551,750 Common Shares at the Offering Price.

The net proceeds of the Public Offering will be used for the Bécancour value added graphite project development, the Matawinie mine and concentrator detailed engineering, as well as corporate general and administrative expenses.

In connection with the Public Offering, BMO received a cash commission of 6% of the gross proceeds of the Public Offering.

Under the Public Offering, Pallinghurst Graphite Limited (“Pallinghurst”) and Charles-Armand Turpin, insiders of the Corporation’s, purchased respectively 2,379,316 and 690,000 Common Shares, which constitutes “related parties transactions” within the meaning of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”) and TSXV Policy 5.9 – Protection of Minority Security Holders in Special Transactions. However, the directors of the Corporation who voted in favour of the Public Offering have determined that the exemptions from formal valuation and minority approval requirements provided for respectively under subsections 5.5(a) and 5.7(1)(a) of Regulation 61-101 can be relied on as neither the fair market value of the Common Shares issued to Pallinghurst and Charles-Armand Turpin nor the fair market value of the consideration paid exceed 25% of the Corporation’s market capitalization. None of the Corporation’s directors has expressed any contrary views or disagreements with respect to the foregoing.