Business
Zentek Ltd. Announces Filing of Preliminary Prospectus in Connection with $30,010,172 Offering
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES. ...
About this update from Zentek Ltd.
[{"type":"text","content":"Zentek Ltd. Announces Filing of Preliminary Prospectus in Connection with $30,010,172 OfferingNOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES.GUELPH, ON / ACCESSWIRE / November 24, 2021 / Zentek Ltd. (\"ZEN\" or the \"Company\") (TSX-V:ZEN and OTC:ZENYF), is pleased to announce that, further to the news release of November 16, 2021, the Company has filed a preliminary prospectus dated November 22, 2021 in order to qualify the distribution of 5,129,944 common shares of the Company (the \"Common Shares\") at a purchase price of $5.85 per Common Share (the \"Offering Price\") for aggregate gross proceeds of $30,010,172 (the \"Prospectus Offering\").Pursuant to the terms of an underwriting agreement (the \"Underwriting Agreement\") between the Company and Eight Capital (\"Eight\"), as lead underwriter and sole bookrunner, Leede Jones Gable Inc. and Research Capital Corporation (together with Eight, the \"Underwriters\"), the Underwriters will purchase an aggregate of 3,419,000 of such Common Shares at the Offering Price for aggregate gross proceeds of $20,001,150, and 1,710,944 of such Common Shares will be issued to certain purchasers who have agreed to purchase the Common Shares on a non-brokered basis at the Offering Price, for gross proceeds of $10,009,022.40, which has been fully allocated.The Company has also granted the Underwriters an over-allotment option to purchase up to an additional 512,850 Common Shares at the Offering Price for additional gross proceeds of up to $3,000,172.50 (the \"Over-Allotment Option\"), upon the terms and conditions set forth in the Underwriting Agreement. The Over-Allotment Option is exercisable, in whole or in part, by Eight, on behalf of the Underwriters, by giving written notice to the Company on or before a date that is not later than 30 days following the closing date and shall be exercisable to acquire Common Shares at the Offering Price.The net proceeds from the Offerings will be used for capital expenses, research and development, acceleration of business growth opportunities and working capital. Closing of the Offering is expected to occur on or about December 8, 2021 and is subject to regulatory approval, including that of the TSX Venture Exchange.This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor ...