NMG Announces the Closing of Aggregate US$37.5 Million Private Placement by Mitsui and Pallinghurst

Rhea-AI Summary

Nouveau Monde Graphite Inc. (NMG) has successfully closed two private placements totaling US$37.5 million from Mitsui & Pallinghurst. The investments were confirmed on February 15, 2024, and May 1st, 2024. Mitsui & Pallinghurst are the investors. More information can be found on NMG's press releases on SEDAR, EDGAR, and the company's website.

Financial Analyst

Nouveau Monde Graphite Inc.'s closure of a $37.5 million private placement with Mitsui & Co., Ltd. and Pallinghurst Bond Limited infuses substantial capital, enhancing the company's financial flexibility. Typically, investments from entities such as Mitsui can signal strategic partnerships and potentially pave the road for future collaboration in the supply chain, particularly important for a resource company. Pallinghurst's investment further diversifies the shareholder base, perhaps indicating a positive outlook on NMG's resource potential. However, investors should consider the terms of the private placement, such as share pricing and future dilution impact. Historically, companies in the materials sector can experience volatility after such placements due to market perception of their balance sheet and future earnings potential.

Market Research Analyst

This capital injection may allow NMG to advance projects and increase its market presence in the graphite industry—a key material in the energy transition, especially in electric vehicle batteries. The current demand for graphite is on the rise and securing funds from reputable investors like Mitsui and Pallinghurst could be construed as a positive market validation. An investor might take this as a sign of NMG's competitiveness in the sector. However, it is important to monitor how these funds will be allocated to ensure they will indeed contribute to growth and not just to the extension of operating runway.

Resource Sector Analyst

The closure of the $37.5 million private placement in the raw materials sector, where NMG operates, is particularly noteworthy as it involves Mitsui, a global player with a myriad of industrial investments. The involvement of such a corporation typically indicates a level of due diligence that may assure some investors. For NMG, a company that appears to be in the development or expansion phase, this could mean an acceleration in the production of graphite and possibly an expanded market share. The long-term implications depend on the integration of this capital into strategic initiatives and the effectiveness of such activities in a competitive landscape.

MONTRÉAL--(BUSINESS WIRE)-- Nouveau Monde Graphite Inc. (“NMG“ or the “Company”) (NYSE: NMG, TSX.V: NOU) confirms it has closed its private placements previously announced on February 15, 2024, and May 1^st, 2024, (the ‘’Private Placements”) representing a gross aggregate amount of US$37.5 million from Mitsui & Co., Ltd. (‘’Mitsui”) (TYO:8031) and Pallinghurst Bond Limited (‘’Pallinghurst”).

For further information regarding the Private Placements, please refer to NMG’s press releases dated May 1, 2024, and February 15, 2024, available under the Company’s profile on SEDAR+ at www.sedar.com and on EDGAR at www.sec.gov, as well as on NMG’s website at: https://nmg.com/private-investment-offtake/ and https://nmg.com/approval-mitsui-pallinghurst-placements/

About Nouveau Monde Graphite

Nouveau Monde Graphite is an integrated company developing responsible mining and advanced manufacturing operations to supply the global economy with carbon-neutral active anode material to power EV and renewable energy storage systems. The Company is developing a fully integrated ore-to-battery-material source of graphite-based active anode material in Québec, Canada. With enviable ESG standards and structuring partnerships with anchor customers, NMG is set to become a strategic supplier to the world’s leading lithium-ion battery and EV manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability. www.NMG.com

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Cautionary Note

All statements, other than statements of historical fact, contained in this press release including, but not limited to those statements which are discussed under the “About Nouveau Monde Graphite” paragraph and elsewhere in the press release which essentially describe the Company’s outlook and objectives, constitute “forward-looking information” or “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of Canadian and United States 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 current technological trends, the business relationship between the Company and its stakeholders, the ability to operate in a safe and effective manner, the timely delivery and installation at estimated prices of the equipment supporting the production, assumed sale prices for graphite concentrate, the accuracy of any Mineral Resource estimates, future currency exchange rates and interest rates, political and regulatory stability, prices of commodity and production costs, the receipt of governmental, regulatory and third party approvals, licenses and permits on favorable terms, sustained labor stability, stability in financial and capital markets, availability of equipment and critical supplies, spare parts and consumables, the various tax assumptions, CAPEX and OPEX estimates, all economic and operational projections relating to the project, local infrastructures, the Company’s business prospects and opportunities and estimates of the operational performance of the equipment, and are not guarantees of future performance.

Forward-looking 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 statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, those risks, delays in the scheduled delivery times of the equipment, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining the necessary permits, 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, including the changes in China’s policy regarding restrictions on Chinese graphite materials exportations, political and social acceptability risk, environmental regulation risk, currency and exchange rate risk, technological developments, and general economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. A further description of risks and uncertainties can be found in NMG’s Annual Information Form dated March 27, 2024, including in the section thereof captioned “Risk Factors”, which is available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. 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 the Company is available in the SEDAR+ database (www.sedarplus.ca), and for United States readers on EDGAR (www.sec.gov), and on the Company’s website at: www.NMG.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502724781/en/

MEDIA

Julie Paquet

VP Communications and ESG Strategy

+1-450-757-8905, ext. 140

jpaquet@nmg.com

INVESTORS

Marc Jasmin

Director, Investor Relations

+1-450-757-8905, ext. 993

mjasmin@nmg.com

Source: Nouveau Monde Graphite Inc.

FAQ

When did NMG close the private placements?

NMG closed the private placements on February 15, 2024, and May 1st, 2024.

How much was the total amount raised in the private placements?

NMG raised a total of US$37.5 million in the private placements.

Who were the investors in the private placements?

The investors in the private placements were Mitsui & Pallinghurst.

Where can I find more information about the private placements?

More information can be found on NMG's press releases on SEDAR, EDGAR, and the company's website.