NEO Battery Materials Ltd. (TSX-V:NBM) said its South Korean subsidiary, NBM Korea Co Ltd, has closed the strategic investment of 3 billion South Korean won (C$3 million) from Automobile & PCB Inc (A&P) on July 1.
Under the terms of the Series A financing, NBM Korea has issued a total of 517,657 common shares at a price of 5,795 won per common share for aggregate gross proceeds of 2,999,820,383 won. This gives A&P a 40% stake in NBM.
NEO said it will use the proceeds for its silicon anode material commercialization project for electric vehicle (EV) lithium-ion batteries and the development of its South Korean mass production facility.
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The Vancouver-based company also said it is in the process of a change of business application to a Tier 2 Industrial, Technology, or Life Sciences issuer. This application is subject to exchange acceptance and the approval of its shareholders, according to NEO.
NEO produces silicon anode materials through its proprietary single-step nanocoating process, which provides improvements in capacity and efficiency over lithium-ion batteries that use graphite in their anode materials. The company intends to become a silicon anode active materials supplier to the EV industry.
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