Business
Nouveau Monde Graphite Strengthens Its Balance Sheet With a $16.5M Cash Investment by Pallinghurst’s Shareholders Following Exercise of Warrants
MONTREAL, Feb. 01, 2021 (GLOBE NEWSWIRE) -- Further advancement of its business plan, strong market conditions and continued confidence and support from The Pal
About this update from Nouveau Monde Graphite Inc
[{"type":"text","content":" MONTREAL, Feb. 01, 2021 (GLOBE NEWSWIRE) -- Further advancement of its business plan, strong market conditions and continued confidence and support from The Pallinghurst Group, its largest investor, have enabled Nouveau Monde Graphite Inc. (“Nouveau Monde” or the “Company”) (TSXV: NOU; OTCQX: NMGRF; Frankfurt: NM9) to secure $16.5M from the exercise of previously-issued warrants. As of today, management is of the view that the Company is sufficiently funded for this year’s further development of its mining and value-added projects with a cash position as of February 1 of $34M. In addition, the Company expects to raise an incremental amount of up to $5.75M in February, assuming the successful closing of the private placement announced on January 13, 2021. Proceeds were received from the exercise of warrants originally issued to Pallinghurst Graphite International Limited (“Pallinghurst”). Pallinghurst transferred those warrants to its shareholders, on January 29, 2021, with the objective to offer the direct opportunity to invest further in Nouveau Monde through the exercise of those warrants – and at the same time strengthening the Company’s balance sheet. As of today, the Company has received signed exercise forms from all of the transferee warrant-holders, which include Messrs. Arne H. Frandsen and Chris Shepherd, who are directors of the Company. Arne H. Frandsen, Chairman of Nouveau Monde and Managing Partner of The Pallinghurst Group, commented: “Today’s $16.5M investment is the fifth equity investment Pallinghurst and its investors have made into Nouveau Monde since 2019. It should be seen as a manifestation of our firm commitment and trust in the Company, its business plan, management team as well as Québec as the logical place for the North American battery materials hub.” Eric Desaulniers, President and Chief Executive Officer of Nouveau Monde, added: “Pallinghurst’s confidence in our value proposition and unwavering support for our business strategy are testaments to the alignment of our respective visions for a cleaner future powered by sustainably and ethically sourced minerals to be used in EVs and renewable energy storage. Today’s equity investment will support the funding required, as we move forward on a number of deliverables in the coming months. This includes the ramp up of our engineering and preparatio...