CATL increases investment in Neo Lithium
by CM Staff
CATL to invest an additional C$2.6 million and maintain its 8% equity ownership in Neo Lithium.
TORONTO — Neo Lithium Corp. announces that Contemporary Amperex Technology Co., Limited, a leading Chinese battery manufacturer and technology company that specializes in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, has provided notice to the Company of its intention to subscribe, through a subsidiary and pursuant to its Investor Rights Agreement, on a non-brokered private placement basis, for 860,870 common shares of the Company at a price of C$3.05 per Share for aggregate gross proceeds to the Company of C$2,625,652, to maintain its 8% equity interest in the Company.
Pursuant to the terms of an investor rights agreement between CATL and the Company, CATL holds a participation right to maintain its pro rata percentage holding in the Company. The right to the Sidecar Placement was triggered as a result of the “bought deal” private placement financing of special warrants of the Company previously announced by the Company on January 20, 2021. Pursuant to its rights under the Investor Rights Agreement, and in parallel to the terms of the Brokered Offering, CATL shall be entitled to an additional 10% of the Shares for no additional consideration should the Company not receive a final receipt by the Ontario Securities Commission for a (final) short form prospectus qualifying the distribution of the Shares underlying the Special Warrants within two months of the closing of the Brokered Offering, scheduled for February 10, 2021.
The Company intends to use the net proceeds from the Sidecar Placement to fund development work at the 3Q Lithium Project located in Catamarca, Argentina and for working capital and general corporate purposes.