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Be the first with the news that moves the market- Nouveau Monde Graphite (NOU) has completed a C$20 million financing with Pallinghurst Graphite to fund its next phase of development
- The company issued to Pallinghurst a secured convertible bond worth $15 million and signed a royalty purchase agreement in exchange for the cancellation of a $5 million debt facility
- Nouveau’s shareholders approved the transaction in a meeting held yesterday with record voting participation
- The financing allows Nouveau to continue the implementation of its battery-grade graphite strategy
- Nouveau Monde Graphite (NOU) is currently up 5.26 per cent and is trading at 20 cents per share
Nouveau Monde Graphite (NOU) has completed a C$20 million financing with Pallinghurst Graphite to fund its next phase of development.
Under the terms of the transaction, Nouveau issued to Pallinghurst a secured convertible bond worth $15 million and signed a royalty purchase agreement on the Matawinie graphite project in exchange for the cancellation of a $5 million debt facility.
The company’s shareholder’s approved the transaction in a meeting held yesterday, with record voting participation and 98 per cent approval.
Eric Desaulniers, President and CEO of Nouveau Monde Graphite, commented on the completion of the transaction.
“Significant support from our shareholders coupled with long-term commitment from Pallinghurst to bring our projects to market strengthen our position as we embark on the next phase of our development.
“The COVID headwinds have not halted the exponential growth in lithium-ion battery demand and we are in an ideal position to cater to the markets with our low carbon-footprint graphite materials,” he said.
With the financing now complete, Nouveau is well-funded to continue the implementation of its battery-grade graphite strategy, which includes the development of highly sustainable anode material for lithium-ion batteries.
Arne Frandsen, co-founder of Pallinghurst and Director of Nouveau Monde Graphite, noted that the electric vehicle and clean energy revolution is gaining momentum globally.
“The winners will be the companies with the lowest-cost, highest-purity products that can be produced in a responsible and environmentally friendly manner, such as Nouveau Monde.
“Through this investment, we have reinforced our commitment to Nouveau Monde and more broadly to Québec, as a world-class destination for battery materials,” he said.
Nouveau Monde Graphite (NOU) is currently up 5.26 per cent and is trading at 20 cents per share at 1:42pm EDT.
