Chinese Battery Specialist Will Maintain 8% Stake
Neo Lithium Corp. (TSXV:NLC) has reports that leading Chinese lithium-ion battery manufacturer and technology company Contemporary Amperex Technology Co. Limited has confirmed it will maintain its 8% equity interest in the company.
CATL has notified Neo Lithium that it intends to subscribe for C$2,625,652 of the company’s shares.
CATL holds a participation right to maintain its pro rata percentage holding in the vompany. The right to the Sidecar Placement was triggered as a result of the “bought deal” private placement financing of special warrants of the Neo Lithium announced on January 20, 2021.
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.
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.
