Neo Lithium Corp., Toronto, Canada, (TSXV:NLC; OTCQX:NTTHF; FSE:NE2) has announced that Contemporary Amperex Technology Co., Limited (“CATL”) (SZSE: 300750), a leading Chinese battery manufacturer and technology company that specializes in the manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, and battery management systems has provided notice to the Company of its intention to subscribe, through a subsidiary and pursuant to its Investor Rights Agreement (described below), on a non-brokered private placement basis, for 860,870 common shares of the Company at a price of C$3.05 per Share for aggregate gross proceeds to the Company of C$2,625,652 (the “Sidecar Placement”), to maintain its 8% equity interest in the Company.
Pursuant to the terms of an investor rights agreement between CATL and the Company (the “Investor Rights Agreement”), CATL holds a participation right to maintain its pro rata percentage holding in the Company. The right to the Sidecar Placement was triggered as a result of the “bought deal” private placement financing of special warrants of the Company (“Special Warrants”) previously announced by the Company on January 20, 2021 (the “Brokered Offering”). Pursuant to its rights under the Investor Rights Agreement, and in parallel to the terms of the Brokered Offering, CATL shall be entitled to an additional 10% of the Shares for no additional consideration should the Company not receive a final receipt by the Ontario Securities Commission for a (final) short form prospectus qualifying the distribution of the Shares underlying the Special Warrants within two months of the closing of the Brokered Offering, scheduled for February 10, 2021.
The Company intends to use the net proceeds from the Sidecar Placement to fund development work at the 3Q Lithium Project located in Catamarca, Argentina and for working capital and general corporate purposes.
The Sidecar Placement is scheduled to close within 45 days of the date hereof (the “Closing Date”) and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including customary approval from the government of the People’s Republic of China, the approval of the TSX Venture Exchange and any required securities regulatory authorities, and signing of a subscription agreement.
About CATL
CATL is a global leader in the development and manufacturing of lithium-ion batteries, with businesses covering R&D, manufacturing and sales in battery systems for new energy vehicles and energy storage systems. In 2019, the company’s EV battery sales volume reached 40.25 GWh worldwide, and making it the world leader in annual EV battery consumption volume (source SNE Research).
About Neo Lithium Corp.
Neo Lithium Corp. has quickly become a prominent new name in lithium brine development by virtue of its high quality 3Q Project and experienced team. Neo Lithium is rapidly advancing its 100% owned 3Q Project – a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”.
The 3Q Project is located in the Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.
