Business
Nouveau Monde Announces Successful C$20 million Financing Transactions with Pallinghurst
SAINT-MICHEL-DES-SAINTS, Quebec, July 15, 2020 (GLOBE NEWSWIRE) -- Nouveau Monde Graphite ("Nouveau Monde" or "NMG") (TSXV: NOU; OTCQX: NMGRF; Frankfurt: NM9) i
About this update from Nouveau Monde Graphite Inc
[{"type":"text","content":" SAINT-MICHEL-DES-SAINTS, Quebec, July 15, 2020 (GLOBE NEWSWIRE) -- Nouveau Monde Graphite (\"Nouveau Monde\" or \"NMG\") (TSXV: NOU; OTCQX: NMGRF; Frankfurt: NM9) is pleased to announce that it has successfully agreed with The Pallinghurst Group (\"Pallinghurst\") financing transactions totaling C$20 million that will fund the next phase of NMG’s development. Nouveau Monde has entered into a convertible bond subscription agreement (the \"Subscription Agreement\") with Pallinghurst pursuant to which NMG has agreed to issue to Pallinghurst a secured convertible bond in the principal amount of C$15 million (the \"Bond Transaction\"). Concurrently, Nouveau Monde has also entered into a royalty purchase agreement with Pallinghurst pursuant to which Pallinghurst has agreed to exchange the principal amount and accrued interest under its existing debt facility of approximately C$5 million into a net smelter return royalty (the \"Royalty\") on the Matawinie graphite mining project, with a partial buy-back option for Nouveau Monde (the \"Royalty Transaction\" and together with the Bond Transaction, the \"Transactions\"). In addition, from the date of closing, Pallinghurst has agreed to a 12-month lock-up undertaking for its shares. Eric Desaulniers, President and CEO of Nouveau Monde commented, \"Through this financing solution, Nouveau Monde strengthens its balance sheet by approximately C$20 million. In addition, Pallinghurst is reiterating its long-term commitment to Nouveau Monde and to bringing the Matawinie graphite project to commercial production. The financial instruments chosen underline Pallinghurst’s vision and engagement for the next phases of our project. We are continuing to work with Pallinghurst, as partners, examining the best options to meet the full financing needs of NMG, for the benefit of all our shareholders.\" Andrew Willis and Arne H. Frandsen as the joint Managing Partners of The Pallinghurst Group said: “In these challenging markets, with COVID-19 putting constraints on capital availability, we are delighted that Pallinghurst has put together a C$20 million funding package for Nouveau Monde. This shows Pallinghurst’s firm commitment to the company, as well as to the natural graphite industry in general and to Québec specifically.” Convertible Bond The Convertible Bond is a three-year instrument for C$15&n...