CPE News (12/15/2020) – Neo Lithium Corp. (TSX-V: NLC; OTCQX: NTTHF; FSE: NE2) has completed previously announced equity investment by Contemporary Amperex Technology Co. Limited (SZSE: 300750) (CATL), whereby CATL, through a subsidiary controlled by CATL, subscribed for 10,217,503 common shares of Neo Lithium at a price of C$0.84 for gross proceeds to Neo Lithium of CDN $8,582,702, and representing approximately 8% of issued and outstanding shares of Neo Lithium.
The transaction was previously announced on September 14, 2020.
Neo Lithium disclosed that “following the TSXV’s review and recommendation of the current trading price relative to the Issue Price and time lapsed since announcing CATL’s intention to invest in the Company, the insider group has not been permitted to participate in the concurrent financing at the Issue Price.”
Neo Lithium stock closed at $1.44 on December 14, 2020.
Currently there are no persons or companies that beneficially own, or exercise control or direction over, directly or indirectly, 10% or more of the issued and outstanding Neo Lithium common shares.
CATL becomes known single largest shareholder of Neo Lithium, controlling 8% of the outstanding shares.
Toronto based Neo Lithium Corp. is rapidly advancing its 100% owned 3Q Project – a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”. The 3Q Project is located in the Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.
photo credit: Neo Lithium
News Release
Neo Lithium Closes Strategic Investment with CATL, the World’s Largest EV Battery Company
TORONTO, Dec. 15, 2020 /CNW/ – Neo Lithium Corp. (“Neo Lithium” or the “Company”) (TSXV: NLC) (OTCQX: NTTHF) (FSE: NE2) is pleased to announce the closing of the previously announced equity investment by Contemporary Amperex Technology Co. Limited (SZSE: 300750) (“CATL”), whereby CATL, through a subsidiary controlled by CATL, subscribed for 10,217,503 common shares (the “Common Shares”) of Neo Lithium at a price of C$0.84 per Common Share (the “Issue Price”) for gross proceeds to Neo Lithium of C$8,582,702, and representing approximately 8% of issued and outstanding shares of the Company. The Common Shares issued to CATL are subject to a 4-month statutory hold period expiring on April 15, 2021. With the proceeds of the equity investment from CATL, the Company has strong net cash position of approximately C$35 million. For more details, please refer to the Company’s press release dated September 14, 2020.
Following the TSXV’s review and recommendation of the current trading price relative to the Issue Price and time lapsed since announcing CATL’s intention to invest in the Company, the insider group has not been permitted to participate in the concurrent financing at the Issue Price.
“The closing of the CATL strategic investment validates the quality of our 3Q project and the capabilities of our management team. It further strengthens our long-term commitment and focus on our Project as we work together with CATL to bring 3Q into full development by building a comprehensive financing plan” commented Constantine Karayannopoulos, Chairman of Neo Lithium. “On behalf of the board, I am delighted and honoured to formally welcome CATL as a new shareholder and we look forward to working with them to advance the 3Q Project into construction and ultimate production.”
About CATL
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 (source SNE Research).
For more information, please visit http://www.catlbattery.com.
About Neo Lithium Corp.
Neo Lithium Corp. has quickly become a prominent new name in lithium brine development by virtue of its high quality 3Q Project and experienced team. Neo Lithium is rapidly advancing its 100% owned 3Q Project – a unique high-grade lithium brine lake and salar complex in Latin America’s “Lithium Triangle”.
The 3Q Project is located in the Catamarca Province, the largest lithium producing area in Argentina covering approximately 35,000 ha including a salar complex of approximately 16,000 ha.
Additional information regarding Neo Lithium Corp. is available on SEDAR at www.sedar.com under the Company’s profile and at its website at www.neolithium.ca, including various pictures of ongoing work at the project.
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 this release. The TSX Venture Exchange Inc. has in no way approved nor disapproved the contents of this press release.
SOURCE Neo Lithium Corp.
For further information: Neo Lithium Corp., Carlos Vicens, cvicens@neolithium.ca