Nouveau Monde Announces the Successful Closing of the Previously Announced C$5.75 Million Private Placement Offering

- February 12th, 2021

The private placement forms part of the previously announced financing, which included a bought deal public offering of C$17 million which was completed in January The net proceeds raised by the Company following these two financings is close to C$22 million Investissement Québec, acting as mandatary for the government of Québec, and Pallinghurst show strong ongoing support, subscribing for the full amount of the …

  • The private placement forms part of the previously announced financing, which included a bought deal public offering of C$17 million which was completed in January
  • The net proceeds raised by the Company following these two financings is close to C$22 million
  • Investissement Québec, acting as mandatary for the government of Québec, and Pallinghurst show strong ongoing support, subscribing for the full amount of the private placement

Nouveau Monde Graphite Inc. (“Nouveau Monde” or the “Company”) ( TSXV: NOU ; OTCQX: NMGRF ; Frankfurt: NM9 ) is pleased to announce that it has closed the non-brokered private placement (the “Private Placement”) of common shares of the Company previously announced on January 13 and 20, 2021. The Private Placement was launched concurrently with the bought deal public offering of C$17 million of the Company, which closed on January 20, 2021.

Pursuant to the Private Placement, the Company issued a total of 3,965,516 common shares at a price of C$1.45 per share for proceeds to the Company of approximately C$5,750,000. Of this amount, Investissement Québec, acting as mandatary for the government of Québec, subscribed for 3,172,413 common shares, for a total subscription price of approximately C$4.6 million, and Pallinghurst Graphite Limited (“Pallinghurst”), an insider of the Company, subscribed for the remainder of the common shares. The common shares issued pursuant to the Private Placement will be subject to a statutory hold period in Canada of four months and one day.

The proceeds of the Private Placement will be used for the Bécancour value-added graphite project development, the Matawinie mine and concentrator detailed engineering, as well as corporate general and administrative expenses.

Under the Private Placement, Pallinghurst, an insider of the Company, purchased 793,103 common shares, which constitutes a “related party transaction” within the meaning of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“Regulation 61-101”) and TSXV Policy 5.9 – Protection of Minority Security Holders in Special Transactions . However, the directors of the Company who voted in favour of the Private Placement have determined, based on advice from counsel and management, that the exemptions from formal valuation and minority approval requirements provided for respectively under subsections 5.5(a) and 5.7(1)(a) of Regulation 61-101 can be relied on as neither the fair market value of the common shares issued to Pallinghurst nor the fair market value of the consideration paid exceed 25% of the Company’s market capitalization. None of the Company’s directors has expressed any contrary views or disagreements with respect to the foregoing.

About Nouveau Monde
Nouveau Monde is striving to become a key element in the sustainable energy revolution. The Company is working towards developing a fully-integrated source of green battery anode material in Québec, Canada. Targeting full-scale commercial operations by 2023, the Company is developing advanced carbon-neutral graphite-based material solutions for the growing lithium-ion and fuel cell markets. With low-cost operations and high ESG standards, Nouveau Monde aspires to become a strategic supplier to the world’s leading battery and auto manufacturers, ensuring robust and reliable advanced material, while guaranteeing supply chain traceability.

Cautionary Note Regarding Forward-Looking Information
All statements, other than statements of historical fact, contained in this press release including, but not limited to the expected use of proceeds, upcoming corporate milestones, and the “About Nouveau Monde” paragraph which essentially describes the Company’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Moreover, these forward-looking statements were based upon various underlying factors and assumptions, including the Company’s business prospects and opportunities, and are not guarantees of future performance.

By their very nature, forward-looking information and statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking information and statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Company’s assets and businesses, competitive factors in the graphite mining and production industry, changes in laws and regulations affecting the Company’s businesses, technological developments, the impacts of the global COVID-19 pandemic and the governments’ responses thereto, and general economic conditions. Unpredictable or unknown factors not discussed in this Cautionary Note could also have material adverse effects on forward-looking statements.

Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Further information regarding Company is available in the SEDAR database (www.sedar.com) and on the Company’s website at: www.NouveauMonde.group


Media  Julie Paquet  Director, Communications  Nouveau Monde +1-450-757-8905 #140  jpaquet@nouveaumonde.ca   Investors  Christina Lalli  Director, Investor Relations  Nouveau Monde +1-438-399-8665  clalli@nouveaumonde.ca

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