Neo Lithium Corp (CVE:NLC) (OTCQX:NTTHF) (FRA:NE2) said Contemporary Amperex Technology Co Limited (CATL), a Chinese battery manufacturer and technology company that specializes in lithium-ion batteries for electric vehicles and energy storage systems as well as battery management systems, has said it intends to subscribe for 860,870 shares in Neo Lithium to maintain its 8% stake.
The lithium brine developer said CATL will subscribe for the shares through a non-brokered private placement at C$3.05 each, providing Neo Lithium with gross proceeds of around C$2.62 million.
READ: Neo Lithium to raise C$30.2M in a special warrant bought deal financing
The firm said it intends to use the proceeds of the placing to fund development work at its 3Q Lithium project in Catamarca, Argentina, and for working capital and general corporate purposes.
CATL’s subscription was triggered as a result of a “bought deal" private placement financing of special warrants of the company previously announced on January 20, 2021. Under the terms of an investor rights agreement, CATL holds a participation right to maintain its pro-rata percentage holding in Neo Lithium.
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