Nouveau Monde Announces Closing of the First Tranche $4,444,499 Financing and Extension of Warrants
NOUVEAU MONDE ANNOUNCES CLOSING OF THE FIRST TRANCHE $4,444,499
FINANCING AND EXTENSION OF WARRANTS
PRESS RELEASE FOR IMMEDIATE RELEAS E
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN
THE UNITED STATES.
Saint-Michel-des-Saints, Québec, Canada, September 19, 2017 – NOUVEAU MONDE GRAPHITE
INC. (the “Corporation”) (TSX Venture Exchange: N OU) (OTCQX: NMGRF) (Frankfurt: NMG) is pleased
to announce that it has closed a first tranche of brokered private placement of an aggregate number of
14,814,996 units ( the “Units”) in the capital of the Corporation, at a price of $0. 30 per Unit, for an
aggregate gross proceeds of $4,444,499 (the “Offering”).
Each Unit is comprised of one common share in the capital of the Corporation and one -half of one
common share purchase warrant. Each whole warrant (the “Warrant”) shall entitle th e holder thereof to
acquire one common share of the capital in the Corporation (the “Warrant Share”), at a price of $0.40 per
Warrant Share, for a period of 24 months following the closing of the Offering.
The Offering was conducted through a syndicate led by Eight Capital together with Jett Capital Advisors,
LLC, Echelon Wealth Partners Inc. and Haywood S ecurities Inc. acting as agents (the “Agents ”). In
consideration for their services, the Agents received an aggregate cash commission of $137,532 and an
aggregate of 458,440 broker warrants to purchase up to 458,440 common shares in the capital of the
Corporation, at a price of $0. 30 per common share, until September 19, 2019 (the “Broker Warrants”) .
The Corporation also paid a cash commission of $30,845.95 to EMD Financial Inc. and $6,000 to EDE
Asset Management Inc . and has issued to each of them 102,820 and 20,000 Broker Warrants ,
respectively.
The net proceeds of the Offering will be used by the Corporation to incur exploration and development
expenses on its Matawinie Property.
All securities issued pursuant to the Offering are subject to a restricted period of four months and a day,
ending on January 20, 2018 under applicable Canadian securities legislation.
The Corporation expects to be able to file shortly all required documentation to satisfy the conditiona l
acceptance of the TSX Venture Exchange (the “TSXV”).
The Corporation also announces that it has received offers from potential investors includi ng institutional
investors from the Province of Québec to subscribe for additional units in a second tranche of the
Offering, subject to certain conditions being met. In such a case, a second closing is expected to occur
within a few weeks.
The President and Chief Executive Officer, the Chief Financial Officer, two executive officer s and one
insider of the Corporation have subscribed in the Offering as follow: 50,000 Units were subscribed by
Mr. Éric Desaulniers, 50,000 Units were subscribed by Mr. Charles-Olivier Tarte , 50,000 Units were
subscribed by Mr. Karl Trudeau, 50,000 Units were subscribed by Mrs Marie-Ève Chaume and 3,333,334
Units were subscribed by Les Placement Charles Armand Turpin inc., controlled by Mr. Charles Armand
Turpin, which constitute “related parties transactio ns” within the meaning of Regulation 61-101 respecting
Protection of Minority Security Holders in Special Transactions (“Regulation 61 -101”) and TSX Venture
Exchange Policy 5.9 – Protection of Minority Security Holders in Special Transactions . However, the
directors of the Corporation who voted in favour of the Offering have determined that the exemptions from
formal valuation and minority approval requirements provided for respectively under subsections 5.5(a)
and 5.7(1)(a) of Regulation 61 -101 can be relied on as neither the fair market value of the Units issued to
these insiders nor the fair market value of the consideration paid exceed 25% of the Corporation’s market
capitalization. None of the Corporation’s directors has expressed any contrary views or disagreements
with respect to the foregoing.
A material change report in respect of these related parties transactions will be filed by the Corporation
but could not be filed earlier than 21 days prior to the closing of the Offering due to the fact that th e terms
of the participation of each of the non -related parties and the related parties in the Offering were not
confirmed.
The Corporation announces that it has filed an application with the TSXV to extend the term of certain
share purchase warrants of the Corporation (the “Amendment to the Warrants”).
An aggregate of 850,000 share purchase warrants were issued on September 16, 2016, pursuant to a
private placement of units closed on September 16, 2016, each of which initially entitled the warrant
holder to purchase one common share in the capital of the Corporation at a price of $0.40 per common
share until September 16, 2017.
The board of directors of the Corporation has approved the Amendment to the warrants (the “Warrants
Term”) to extend their expiry d ate to September 16, 2018. The Amendment to the Warrants is subject to
the approval of the TSXV.
About Nouveau
With a management team that has over 40 years of recent experience in the production, processing and
marketing of natural graphite, the Corporation is a dynamic company positioned as a future leader in the
emerging North American graphite and anode material for lithium -ion battery markets. The Corporation is
evaluating its Matawinie graphite project discovered in 2015 with the objective of becoming the largest
graphite mine in North America. The Corporation published a Preliminary Economic Assessment,
completed according to NI 43 -101 guidelines, in June of 2016. (see press release dated June 22,
2016 : http://bit.ly/2tEsoPT). The project is located in the Saint -Michel-des-Saints area, some 120 km
north of Montreal, Quebec, Canada. It has direct access to all needed infrastructure, labour as well as
green and affordable hydroelectricity. The Corporation is developing its project with the highest corporate
social responsibility standards while targeting a low environmental footprint (targeting a net zero carbon
emission operation).
Except for historical information, this press release may contain “forward -looking statements” and
“forward-looking information” within the meaning of applicable securities laws that reflect the Nouveau
Monde’s current expectation regarding future events, including, without limitation, the execution of the
definitive agreements. F orward-looking statements contained in this press release involve known and
unknown risks, uncertainties and other factors that may cause actual results, performance and
achievements of Nouveau Monde, as the case may be, to be materially different from any future results,
performance or achievements expressed or implied by the said forward -looking statements. Nouveau
Monde expressly disclaims any intention to update or revise any forward -looking statements and
information whether as a result of new informat ion, future events or otherwise, other than as required by
law.
Neither 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 t his
release.
The statements herein that are not historical facts are forward ‐looking statements. These statements
address future events and conditions and so involve inherent risks and uncertainties. Actual results could
differ from those currently projected. The Corporation does not assume the obligation to update any
forward‐looking statement.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Éric Desaulniers, Msc Géo
President and Chief Executive Officer of the Corporation
(819) 923-0333