NEO Battery Materials announces completion of financing
by CM Staff
The Company is additionally in the process of a Change of Business application to a Tier 2 Industrial, Technology, or Life Sciences issuer.
VANCOUVER — NEO Battery Materials Ltd. announces that the Company’s South Korean subsidiary, NBM Korea Co., Ltd., had closed the strategic investment of ₩ 3 billion KRW, or $ 3 million CAD, from Automobile & PCB Inc. on July 1, 2022. The Company is additionally in the process of a Change of Business application to a Tier 2 Industrial, Technology, or Life Sciences issuer.
Under the terms of the Series A financing, NBM Korea has issued a total of 517,657 Common Shares at a price of ₩ 5,795 per Common Share for aggregate gross proceeds of ₩ 2,999,820,383 KRW. A&P represents 40% of the issued shares in NBM Korea Co., Ltd. The proceeds will be utilized for NEO’s silicon anode material commercialization project for EV lithium-ion batteries and the development of the South Korean mass production facility. Material terms and conditions of the agreement with A&P include: A&P may conduct due diligence over the use of the investment funds by NBM Korea and such finds shall be deposited into and managed from a separate account of NBM Korea; NBM Korea cannot transfer or collateralize any of its assets without the consent of A&P; NBM Korean cannot acquire an interest in another entity and cannot increase or decrease its capital or grant stock options; and A&P is required to be consulted on the appointment or dismissal of the NBM Korea CEO.
The Change of Business in accordance with Exchange Policy 5.2 will be subject to Exchange acceptance and the approval of shareholders of NEO Battery Materials Ltd. The Company will be providing a comprehensive information circular in regard to the Change of Business for the Annual General and Special Meeting at which the Company will be seeking shareholder approval for the proposed Change of Business.
