Leading Edge Materials Announces Closing of C$2,500,000 Non-Brokered Private Placement
NEWS RELEASE August 23, 2023
LEADING EDGE MATERIALS CORP.
14th Floor 1040 West Georgia Street, Vancouver, BC, V6E 4H1
[email protected] | www.leadingedgematerials.com
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF | FRA: 7FL
TSX.V: LEM | Nasdaq First North: LEMSE | OTCQB: LEMIF
LEADING EDGE MATERIALS ANNOUNCES CLOSING OF C$2,500,000 NON-BROKERED PRIVATE
PLACEMENT
Vancouver, August 23, 2023 – Leading Edge Materials Corp. (“Leading Edge Materials ” or the
“Company”) (TSXV: LEM) (Nasdaq First North: LEMSE ) (OTCQB: LEMIF) announces the closing of the
non-brokered private placement financing (the “Private Placement”) previously announced on August
11, 2023. Pursuant to the Private Placement, the Company has issued 21,739,130 units (the “Units”) at
a price of C$0.115 per Unit for aggregate gross proceeds of C$2,500,000.
Each Unit will consist of one (1) common share (each, a “Common Share”) in the capital of the
Company and one (1) Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the
holder to purchase one Common Share (a “Warrant Share”) at a price of C$0.225 per Warrant Share
until the date which is four (4) years from the closing date of the Private Placement (the “Closing
Date”).
Leading Edge Materials intends to use net proceeds for the Company’s projects, located in Sweden and
Romania and for general working capital and corporate purposes. A finder’s fee of 7% was paid to
arm’s length third parties on a portion of the Private Placement. The Private Placement is subject to
final approval from the TSX Venture Exchange (the “Exchange”).
The securities issued pursuant to the Private Placement are subject to applicable statutory resale
restrictions, including a hold period expiring on December 24, 2023, pursuant to applicable Canadian
securities laws.
The Units sold in the Private Placement were offered by way of prospectus exemptions in Sweden. The
minimum subscription and allotment amount for Sweden and the European Economic Area (“EEA”)
investors in the Private Placement was an amount equivalent to at least EUR 100,000.
Insiders of the Company purchased a total of 12,052,173 Units under the Private Placement which
constitutes a “related party transaction” as defined under Multilateral Instrument 61 -101 – Protection
of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on exemptions
from the formal valuation and minority shareholder approval requirements of MI 61 -101 based on the
fact that neither the fair market value of the Units subscribed for by the insiders, nor the consideration
for the Units paid by such insiders, exceeded 25% of the Company’s market capitalization as
determined in accordance with MI 61-101.
Mr. Eric Krafft, a director of the Company, has subscribed for and acquired 10,352,173 Common Shares
under the Private Placement. Prior to the Private Placement, Mr. Krafft beneficially owned and
controlled 62,204,404 Common Shares and 24,150,000 warrants of the Company. Mr. Krafft is a
Control Person (as defined by the policies of the Exchange), beneficially holding 72,556,577 common
shares and 34,502,173 warrants of the Company, representing approximately 38.75% of the issued and
outstanding Common Shares on a non -diluted basis, and 45.92% on a partially diluted basis, assuming
the exercise of warrants held by Mr. Krafft only. The Company obtained disinterested shareholder
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approval at the Annual General Meeting held on July 24, 2020 for Mr. Krafft to beco me a Control
Person of the Company.
Eric Krafft has acquired the Units for investment purposes and has a long -term view of his investment.
In the future, Mr. Krafft may take such actions in respect of his investment in the Company as he may
deem appropriate, depending on the market conditions and circumstances at that time. The foregoing
disclosure regarding Mr. Krafft’s holdings is being disseminated pursuant to National Instrument 62-103
The Early Warning System and Related Take-Over Bid and Insider Repor ting Issues (NI 62 -103). A copy
of Mr. Krafft’s early warning report will appear on the Company’s profile on SEDAR Plus. The
information herein with respect to the number of Mr. Krafft’s securities and his intention relating
thereto are not within the knowledge of the Company and are provided by Mr. Krafft.
The securities have not been, and will not be, registered under the U.S. Securities Act, or any United
States state securities laws, and may not be offered or sold in the United States or to, or for the
account or benefit of, U.S. persons absent registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable United States state securities laws. This press
release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United
States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful.
This news release is not a prospectus under Regulation (E U) 2017/1129 (the “EU Prospectus
Regulation”). The Company has not authorized any offer of securities to the public (as defined in the EU
Prospectus Regulation) in any EEA member state and no such prospectus has been or will be prepared
in connection with the Private Placement.
On behalf of the Board of Directors,
Leading Edge Materials Corp.
Eric Krafft, CEO
For further information, please contact the Company at:
1.604.685.9316
www.leadingedgematerials.com
About Leading Edge Materials
Leading Edge Materials is a Canadian public company focused on developing a portfolio of critical raw
material projects located in the European Union. Critical raw materials are determined as such by the
European Union based on their economic importance and supply risk. They are directly linked to high
growth technologies such as lithium -ion batteries and permanent magnets for electric motors and
wind power that underpin the sustainability transition of society. The portfolio of projects includes the
100% owned Woxna Graphite mine (Sweden), Norra Kärr HREE project (Sweden), Bergby lithium
project (Sweden) and the 51% owned Bihor Sud Nickel Cobalt exploration alliance (Romania).
Additional Information
The information was submitted for publication through the agency of the contact person set out above,
on August 23, 2023, at 11:00 AM Vancouver time.
Leading Edge Materials is listed on the TSXV under the symbol “LEM”, OTCQB under the symbol
“LEMIF” and Nasdaq First North Stockholm under the symbol “LEMSE”. Mangold Fondkommission AB is
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the Company’s Certified Adviser on Nasdaq First North and may be contacted via
email [email protected] or by phone +46 (0) 8 5030 1550.
Reader Advisory
This news release may contain statements which constitute “forward -looking information”, including
statements regarding the plans, intentions, beliefs and current expectations of the Company, its
directors, or its officers with respect to the future business activities of the Company. The words “may”,
“would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar
expressions, as they relate to the Company, or its management, ar e intended to identify such forward -
looking statements. Investors are cautioned that any such forward -looking statements are not
guarantees of future business activities and involve risks and uncertainties, and that the Company’s
future business activities may differ materially from those in the forward-looking statements as a result
of various factors, including, but not limited to, fluctuations in market prices, changes in the Company’s
intended use of proceeds from the Private Placement, successes of the operations of the Company,
continued availability of capital and financing and general economic, market or business conditions.
There can be no assurances that such information will prove accurate and, therefore, readers are
advised to rely on their own e valuation of such uncertainties. The Company does not assume any
obligation to update any forward-looking information except as required under the applicable securities
laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that te rm is defined in the
policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this news
release.