NEO Battery Materials Announces Completion of NBM Korea Series A Financing & Provides Updates on Change of Business Application
October 12 2022 - 9:00AM
(
TSXV:
NBM) (
OTCQB: NBMFF)
- South Korean Subsidiary, NBM Korea Co., Ltd., Closed Series A
$3 Million CAD Strategic Investment from South Korean Automotive
Parts Manufacturer, Automobile & PCB Inc. (“A&P”) on July
1, 2022
- In Process of Change of Business Application to Tier 2
Industrial, Technology, or Life Sciences Issuer with TSXV
Exchange
NEO Battery Materials Ltd.
(“NEO” or the
“Company”)
announces that the Company’s South Korean subsidiary, NBM Korea
Co., Ltd. (“NBM Korea”), had closed the strategic
investment of ₩ 3 billion KRW, or $ 3 million CAD, from Automobile
& PCB Inc. (“A&P”) 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.
About Automobile & PCB
Inc.Automobile & PCB Inc is a public company listed on
the Korean Exchange and currently listed on the main board, KOSPI.
A&P has annual revenues of CAD $70M with an operating income of
CAD $6.8 M from its automotive parts business. A&P also retains
a 100% subsidiary for its PCB business with yearly revenues of CAD
65M. Yongsan, another related company of A&P, has 43 years of
corporate history in the automotive industry. With annual revenues
of CAD $600M, it has 17 production sites across 5 countries (Korea,
China, US, Mexico, and India). Customers include Hyundai, Kia
Motors, Suzuki (Japan), and 4 Chinese automotive companies
including BYD Auto and Great Wall.
About NEO Battery Materials
Ltd.NEO Battery Materials Ltd.
is a Vancouver-based company focused on electric vehicle
lithium-ion battery materials. NEO has a focus on producing silicon
anode materials through its proprietary single-step nanocoating
process, which provides improvements in capacity and
efficiency over lithium-ion batteries using graphite in their anode
materials. The Company intends to become a silicon anode active
materials supplier to the electric vehicle industry. For more
information, please visit the Company’s website at:
https://www.neobatterymaterials.com/.
On behalf of the Board of DirectorsSpencer
HuhPresident and CEO604-697-2408shuh@neobatterymaterials.com
This news release includes certain forward-looking statements as
well as management's objectives, strategies, beliefs and
intentions. Forward looking statements are frequently identified by
such words as "may", "will", "plan", "expect", "anticipate",
"estimate", "intend" and similar words referring to future events
and results. Forward-looking statements are based on the current
opinions and expectations of management. All forward-looking
information is inherently uncertain and subject to a variety of
assumptions, risks and uncertainties, including the speculative
nature of mineral exploration and development, fluctuating
commodity prices, the effectiveness and feasibility of technologies
which have not yet been tested or proven on a commercial scale,
competitive risks and the availability of financing, as described
in more detail in our recent securities filings available
at www.sedar.com. Actual events or results may differ materially
from those projected in the forward-looking statements and we
caution against placing undue reliance thereon. We assume no
obligation to revise or update these forward-looking statements
except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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