NEO Battery Materials Ltd. has announced that the Company’s South Korean subsidiary – NBM Korea Co., Ltd. – has signed an agreement to receive a strategic investment of ₩3 billion KRW, or $3 million CAD, from Automobile & PCB Inc. for a 40% stake. The proceeds from the Series A financing will be used to optimize commercialization efforts and to advance the first phase of the Korean silicon anode mass production facility for EV lithium-ion batteries. The investment is scheduled to close by July 1, 2022.
Following the announcement of the strategic MOU with A&P on June 8, 2022, NBM Korea has successfully secured a strategic investment and collaboration opportunity after holding positive discussions and qualifying a strict due diligence process. NEO and A&P, along with Yongsan and YSP, will cooperate to commercialize all NBMSiDE™ products and construct the Silicon Anode Commercial Plant. Both parties will actively seek to undertake joint projects and expand their network within the automotive and lithium-ion battery business.
The Series A strategic financing allows the shareholders’ value of the parent company, NEO Battery Materials Ltd., to be protected without dilution from any issuances of common shares or purchase warrants. Funds received from A&P will be solely used by the South Korean subsidiary, NBM Korea.
Mr. Spencer Huh, President and CEO of NEO, commented, “Despite difficulties and headwinds in both the financial markets and economy, NEO Battery Materials is highly excited about this meaningful achievement of NBM Korea’s $3 million Series A financing to advance mass production to the next step. In particular, we strongly believe that NBM Korea will create additional synergies through strategic business relationships with A&P and its related parties, Yongsan and YSP, that hold a proven operating history of over 40 years in the automotive industry.”
“With the $3 million secured, NBM Korea is under discussion with financial institutions in South Korea to obtain debt or equipment purchase financing for the next phases of the mass production facility. Through this achievement, NEO will focus on optimization and concurrently proceed with the process design in order,” added Mr. Huh.
Source:batteryindustry
