Business
Zentek Announces Brokered LIFE Offering for Gross Proceeds of up to C$15 Million
Guelph, Ontario--(Newsfile Corp. - May 14, 2026) - Zentek Ltd. (TSXV: ZEN) (NASDAQ: ZTEK) ("Zente...
About this update from Zentek Ltd.
Zentek Announces Brokered LIFE Offering for Gross Proceeds of up to C$15 MillionGuelph, Ontario--(Newsfile Corp. - May 14, 2026) - Zentek Ltd. (TSXV: ZEN) (NASDAQ: ZTEK) ("Zentek" or the "Company") today announced that it has entered into an engagement agreement with Red Cloud Securities Inc. ("Red Cloud") to act as sole agent and bookrunner on a "best efforts" basis in connection with a marketed private placement (the "Marketed Offering") for gross proceeds of up to C$15,000,000 from the sale of up to 15,000,000 units of the Company (the "Units") at a price of C$1.00 per Unit (the "Offering Price").Each Unit will consist of one common share of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder thereof to purchase one Common Share (a "Warrant Share") at a price of C$1.50 at any time on or before the date that is 36 months following the Closing Date (as herein defined).The Company has granted Red Cloud an option, exercisable in whole or in part up to 48 hours prior to the closing of the Marketed Offering, to sell up to an additional 3,000,000 Units at the Offering Price for additional gross proceeds of up to C$3,000,000 (the "Agent's Option"). The Marketed Offering and the securities issuable on exercise of the Agent's Option are collectively referred to as the "Offering".Use of ProceedsThe Company intends to use the net proceeds from the Offering for (i) the development and derisking of the Albany Graphite Project, including the completion of a new Preliminary Economic Assessment currently being prepared by Micon International Limited, the advancement of subsequent preliminary feasibility study work, and business development activities targeting small modular reactor developers, national defence end-users, and other high-intensity end-user markets for which Albany ultra-high-purity graphite is suited; (ii) the continued commercialization of the Company's ZenGUARD™ platform; and (iii) payment obligations, general working capital and corporate purposes.Listed Issuer Financing ExemptionSubject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"), the Units will be offered for sale to purchasers resident in the provinces of British Columbia, Alberta, Manitoba, Saskatchewan, and Ontari...