Nouveau Monde Graphite and Panasonic sign offtake agreement, $25M placement

Nouveau Monde Graphite (NMG) and Panasonic Energy, a wholly owned subsidiary of Panasonic Holdings (PCRFY), have entered into a binding offtake agreement pursuant to which NMG will supply 18,000 tons per annum of its planned Phase-2 active anode material production to Panasonic Energy for an initial period of seven years. In addition to the Offtake Agreement, NMG and Panasonic also entered into a subscription agreement for Panasonic to make an initial $25M equity investment in NMG to support the advancement of NMG’s Phase-2 operations – the Matawinie Mine and the Becancour Battery Material Plant – in line with Panasonic Energy’s specifications refined during the qualification process and technical collaboration. With a confirmed multiyear sales commitment from Panasonic Energy supplemented with the Tranche 1 Investment, and with the parallel General Motors Co. transaction, NMG has the means and technical parameters in hand to advance engineering of the company’s Phase-2 Becancour Battery Material Plant. In connection with the Tranche 1 Investment, Panasonic has agreed to subscribe for 12.5M common shares in the capital of NMG and 12.5M common share purchase warrants for aggregate proceeds of $25M. Such Warrants are generally exercisable in connection with the Tranche 2 Investment at FID in accordance with their terms. NMG will use the net proceeds from the Tranche 1 Investment for the development of the Phase-2 Matawinie Mine and Becancour Battery Material Plant. Panasonic will be subject to a standstill limitation whereby it will not be able to increase their holdings beyond 20% of the issued and outstanding NMG Common Shares for a period of three years.