Nouveau Monde Graphite Inc. (TSXV: NOU) (OTCQX: NMGRF) (Frankfurt: NM9) is pleased to announce that it has closed the non-brokered private placement of common shares of the Company previously announced on January 13 and 20, 2021. The Private Placement was launched concurrently with the bought deal public offering of C$17 million of the Company, which closed on January 20, 2021.
Pursuant to the Private Placement, the Company issued a total of 3,965,516 common shares at a price of C$1.45 per share for proceeds to the Company of approximately C$5,750,000. Of this amount, Investissement Québec, acting as mandatary for the government of Québec, subscribed for 3,172,413 common shares, for a total subscription price of approximately C$4.6 million, and Pallinghurst Graphite Limited, an insider of the Company, subscribed for the remainder of the common shares. The common shares issued pursuant to the Private Placement will be subject to a statutory hold period in Canada of four months and one day.
The proceeds of the Private Placement 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.
Under the Private Placement, Pallinghurst, an insider of the Company, purchased 793,103 common shares, which constitutes a “related party transaction” within the meaning of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions and TSXV Policy 5.9 – Protection of Minority Security Holders in Special Transactions. However, the directors of the Company who voted in favour of the Private Placement have determined, based on advice from counsel and management, 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 nor the fair market value of the consideration paid exceed 25% of the Company’s market capitalization. None of the Company’s directors has expressed any contrary views or disagreements with respect to the foregoing.
About Nouveau Monde
Nouveau Monde is striving to become a key element in the sustainable energy revolution. The Company is working towards developing a fully-integrated source of green battery anode material in Québec, Canada. Targeting full-scale commercial operations by 2023, the Company is developing advanced carbon-neutral graphite-based material solutions for the growing lithium-ion and fuel cell markets. With low-cost operations and high ESG standards, Nouveau Monde aspires to 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.