NEO Battery Materials Announces Closing of Non-Brokered Private Placement Pursuant to Listed Issuer Financing Exemption

TORONTO, Nov. 27, 2023 (GLOBE NEWSWIRE) -- (TSXV: NBM) (OTCQB: NBMFF)

NEO Battery Materials Ltd. (“NEO” or the “Company”), a low-cost silicon anode materials developer that enables longer-running, rapid-charging lithium-ion batteries, is pleased to announce that, effectively on November 24, 2023, the Company had closed the non-brokered private placement of 11,386,860 units (the “Units”) of the Company at the price of $0.32 CAD per Unit (the “Offering Price”) for gross proceeds of $3,643,795.20 CAD (the “Offering”).

Each Unit consists of one common share of the Company (each, a “Common Share”) and one non-transferable Common Share purchase warrant (each, a “Warrant”). Each 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 after the closing date or until November 24, 2025.

During the period of 24 months after the closing date, in the event that the daily volume-weighted average trading price (or closing bid price on days when there are no trades) of the Common Shares on the TSX Venture Exchange (“TSXV” or the “Exchange”) is at least $1.00 CAD per Common Share for a minimum of 15 consecutive trading days, the Company may issue a written notice or press release (a “Warrant Acceleration Notice”) to holders of the Warrants requiring each holder to exercise the Warrants within 30 days following the date of delivery of the Warrant Acceleration Notice.

Subject to compliance with applicable regulatory requirements and in accordance with National Instruments 45-106 – Prospectus Exemptions (“NI 45-106”), the Offering was made to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A.2 of NI 45-106 (the “Listed Issuer Financing Exemption”). The securities issued pursuant to the Listed Issuer Financing Exemption will not be subject to resale restrictions in accordance with applicable Canadian securities laws, and the Units issued will be immediately freely tradeable. There is an offering document related to the Offering that can be accessed under the Company’s profile at www.sedarplus.ca and at www.neobatterymaterials.com. The Offering remains subject to the final acceptance of the TSXV.