Northern Graphite Signs Agreement to Acquire Ownership Interest in NeoGraf Solutions
Northern Graphite Signs Agreement to Acquire
Ownership Interest in NeoGraf Solutions
Ottawa, Ontario--(Newsfile Corp. - February 13, 2023) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(the "
Company
" or "
Northern
") is pleased to announce
that it has entered into an agreement with Edgewater Capital Partners ("
Edgewater
") to acquire an
ownership interest in
NeoGraf Solutions, LLC ("
NeoGraf
").
NeoGraf is a leading provider of specialty,
value added products manufactured from natural graphite and has a strong intellectual property portfolio
and a blue chip customer base.
NeoGraf is one of Northern's largest customers.
This investment will
enable Northern to integrate downstream into the manufacturing of graphite products for a number of
high-growth markets including lithium ion batteries/EVs, fuel cells, graphene and nanomaterials, thermal
management in consumer electronics, smart building products and fire retardants.
Under the terms of agreement, Northern has a six month option to acquire an effective 50.1% voting
interest and a 33.3% equity interest in NeoGraf and also has an option to increase its interest up to
100% at a later date subject to the terms and conditions of the agreement.
Northern has engaged Sprott
Capital Partners LP to act as its financial advisor with respect to financing the investment. Closing of
Northern's investment is subject to the execution of definitive agreements, the receipt of all required third
party and regulatory approvals including, if applicable, approval of the TSX Venture Exchange and to
Northern completing satisfactory financing arrangements.
Hugues Jacquemin, Northern's CEO, commented, "The NeoGraf transaction is a major step toward
integrating downstream to capture a greater share of the value chain and creating an industry leading
mine-to-market natural graphite company with the ambition to produce low carbon footprint products."
He added that, "We are very pleased to be partnering with Edgewater, which will enable us to complete
the transaction in a very capital efficient manner.
The combination of Edgewater's performance materials
expertise and our knowledge of the graphite industry will help enable NeoGraf to achieve its full growth
potential."
"We are very excited to partner with Hugues and the Northern team," commented Robert Girton, a
Partner at Edgewater.
"Their investment in NeoGraf clearly demonstrates their 'mine-to-market' strategy
and enhances the security of supply and value that NeoGraf provides to its blue-chip customer base.
Further, the collaboration between the organizations will serve to accelerate and expand the breadth of
unique solutions which ultimately enable our customers' commercial success."
Drew Walker, CEO of Neograf, commented, "Similar to NeoGraf, Northern is a noted thought leader in
the worldwide graphite industry, an industry which sits at the centre of several megatrends that will drive
outsized growth opportunities for our products. Together, Northern and NeoGraf will be a powerful
combination in the development of high performance technical solutions that address our customer's
application specific needs. Additionally, Northern provides NeoGraf with greater security of supply and
expands the geographic regions from which we source our graphite. This will be a key advantage as we
execute our shared vision for growth."
About Northern Graphite
Northern is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world
leader in producing natural graphite and upgrading it into high value products critical to the green
economy including anode material for lithium ion batteries/EVs, fuel cells and graphene, as well as
advanced industrial technologies.
Northern is the only significant graphite producing company in North America and will become the third
largest outside of China when its Namibian operations come back online.
The Company also has two
large scale development projects, Bissett Creek in Ontario and Okanjande in Namibia, that will be a
source of continued production growth in the future.
All projects have "battery quality" graphite and are
located close to infrastructure in politically stable countries.
About NeoGraf
NeoGraf Solutions LLC is based in Lakewood, Ohio where it operates a 395,000 s/f manufacturing
facility on a 22 acre, company owned site.
It has just over 100 employees and a strong R&D, materials
science and application development capability with 10 R&D scientists and over 150 patents.
NeoGraf
is a global technology leader in the sale of highly-engineered specialty products, materials and additives
which are largely based on natural graphite and proprietary technologies.
It has a 100+ year history and
a strong brand name with over 250 customers in 22 countries.
Edgewater Capital Partners
Edgewater Capital Partners is a Cleveland based, sector-focused private equity firm that invests in
lower middle-market performance materials and service businesses. The firm has extensive experience
and expertise investing in the people, technology, and facilities to accelerate the growth trajectory of
niche manufacturers of specialty chemicals, life sciences, advanced materials, and engineered
components. Over twenty years of industry specific investing has allowed the firm to develop a deep
understanding of the complexities and nuances common to these businesses.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedar.com
, our
Social Channels
listed below or
contact the Company at
(613) 271-2124.
YouTube
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. Forward- looking statements and information are frequently characterized
by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain events or conditions "may", "will",
"could", or "should" occur. Forward-looking statements in this release include statements regarding,
among others, the Company's intentions with respect to completing the investment in
NeoGraf,
completing the financing arrangements relating thereto, advancing its developments projects to
production, and developing the capacity to manufacture value added products. All such forward-
looking statements are based on assumptions and analyses made by management based on their
experience and perception of historical trends, current conditions and expected future developments,
as well as other factors they believe are appropriate in the circumstances. However, these statements
are subject to a variety of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected including, but not limited to unexpected changes in
laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to
perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or
inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver
anticipated results or results that would justify and support continued studies, development or
operations. Readers are cautioned not to place undue reliance on forward-looking information or
statements.
Although the forward-looking statements contained in this news release are based on what
management believes are reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with them. These forward-looking statements are made as of the date
of this news release and are expressly qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after the
date of this news release.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/154546