Business
Zentek Announces That Its Brokered LIFE Offering Is Oversubscribed and Fully Allocated
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U...
About this update from Zentek Ltd.
Zentek Announces That Its Brokered LIFE Offering Is Oversubscribed and Fully AllocatedTHIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESGuelph, Ontario--(Newsfile Corp. - May 19, 2026) - Zentek Ltd. (TSXV: ZEN) (NASDAQ: ZTEK) ("Zentek" or the "Company") today announced that, further to its news release dated May 14, 2026, its previously announced "best efforts" marketed private placement (the "Marketed Offering") is oversubscribed and fully allocated. Pursuant to the Marketed Offering, the Company intends to raise gross proceeds of up to C$15,000,000 from the sale of up to 15,000,000 units of the Company (each, a "Unit") at a price of C$1.00 per Unit (the "Offering Price"). Red Cloud Securities Inc. ("Red Cloud") is acting as sole agent and bookrunner in connection with the Offering."The level of interest in this Offering reflects the institutional confidence in the value-creation path we have built across Albany Graphite, ZenGUARD™, and Triera over the past six months," said Mohammed Jiwan, Chief Executive Officer of Zentek. "This capital allows us to execute on the next 24 months of our plan with discipline and focus."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 ProceedsAs disclosed in the offering document dated May 14, 2026 (the "Offering Document"), the 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 bu...