Nouveau Monde Graphite Inc. (TSX-V: NOU) (OTCQX: NMGRF) (Frankfurt: NM9) is pleased to announce that it has entered into an agreement with BMO Capital Markets under which BMO has agreed to buy on bought deal basis 10,345,000 common shares, at a price of C$1.45 per Common Share for gross proceeds of approximately C$15 million. The Corporation has granted the Underwriter an option, exercisable, in whole or in part, and from time to time, for a period of 30 days from and including the Closing Date (as defined herein), to purchase at the Offering Price up to an additional 1,551,750 Common Shares, representing 15.0% of the number of Common Shares issued pursuant to the Public Offering, order to cover for over-allotments, if any, and for market stabilization purposes. The Public Offering is expected to close on or about January 20, 2021 and is subject to Nouveau Monde receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The Corporation is also pleased to announce that it is concurrently launching a non-brokered private placement for total gross proceeds of approximately C$5 million on the same terms as the Public Offering with institutional investors. In addition, investors participating in the Private Placement will each have the option to purchase a number of additional Common Shares representing up to 15% of the number of Common Shares subscribed by each of them on closing. Any common shares issued pursuant to the Private Placement will be subject to a statutory hold period in Canada for a period of 4 months and one day. The Private Placement is expected to close in early February 2021 and will be subject to Nouveau Monde receiving all necessary regulatory approvals, including the approval of the TSX-V. Closing of the Private Placement and of the Public Offering are not conditional upon each other.
The Pallinghurst Group which currently holds approximately 20% of the Corporation’s Common Shares has indicated that it intends to participate pro-rata its current ownership in both the Public Offering and the Private Placement.
The net proceeds of the Public Offering and Private Placement will be used for the Becancour value added graphite project development, the Matawinie mine & concentrator detailed engineering and corporate general and administrative expenses.
In respect of the Public Offering, Common Shares will be offered by way of a prospectus supplement in all of the provinces of Canada (except the territories) and may also be offered by way of private placement in the United States.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Nouveau Monde Graphite
Nouveau Monde will be a key operator in the sustainable energy revolution. The Corporation is developing the only fully-integrated source of green battery anode material in the Western World. Targeting full-scale commercial operations by early 2023, the Corporation will provide advanced carbon-neutral graphite-based material solutions to the growing lithium-ion and fuel cell markets. With low-cost operations and the highest of ESG standards, Nouveau Monde will become a strategic supplier to the World’s leading battery and auto manufacturers, ensuring robust and reliable advanced material, while guaranteeing supply chain traceability.
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We acknowledge the [financial] support of the Government of Canada.