28 October 2025 | News
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NEO Battery Materials Ltd., a low-cost, silicon-enhanced battery developer that enables longer-running, rapid-charging batteries for drones, robotics, and electronics, is pleased to announce that the Company has closed the order book on its previously announced non-brokered private placement (the "Offering") of 9,803,921 units (each, a "Unit") at a price of $0.51 CAD per Unit for aggregate gross proceeds of approximately $5 million CAD.
Mr. Spencer Huh, President and CEO of NEO, commented, "With the vote of confidence of institutional investment, we are delighted to strengthen our balance sheet to proceed toward the commercialization and production of NEO's high-performance lithium-silicon batteries. As discussed, we will deploy funds into building out the megawatt-hour (MWh) scale battery manufacturing facility to become a vertically integrated, end-to-end battery solutions provider to our drone, robotics, automotive, and electronics pipeline and customers."
The Offering has been fully subscribed with institutional investor representation. The closing is expected to occur by or around the end of the week of October 27th, or a later date that may be determined by the Company or approving entities. The Offering is subject to certain closing conditions, including, but not limited to, the receipt of all necessary approvals, including the conditional acceptance by the TSX Venture Exchange ("TSXV").
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 whole Warrant will be exercisable to acquire one Common Share of the Company at an exercise price of $0.80 CAD for a period of 36 months from the closing date of the Offering. The Company may compensate certain eligible finders under the Offering and may pay a cash commission of up to 6% of the gross proceeds and issue such a number of finder's options of up to 6% of the total number of Units issued.
The net proceeds of the Offering are expected to be allocated towards (i) procuring cylindrical and prismatic-format battery manufacturing equipment and other relevant installations for the recently announced 3.2-acre expansion site, and (ii) working capital and general corporate overhead.
The Units under the Offering are being offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirement available under Section 2.3 of Ontario Securities Commission Rule 72-503 – Distributions Outside Canada ("OSC 72-503"), and accordingly, the securities issued pursuant to OSC 72-503 will not be subject to resale restrictions. The Offering is not a Related Party Transaction as defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") and therefore is not subject to TSXV Policy 5.9.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities law, or an exemption from such registration requirements is available.
