Nouveau Monde receives $37.5M investment from Mitsui and Pallinghurst

Nouveau Monde Graphite (NMG) has rallied Mitsui & Co. and Pallinghurst Bond for an aggregate combined investment of $37.5M to advance the first fully integrated natural graphite active anode material production of its kind in North America. The company’s strategic partner Mitsui supports the attainment of this milestone and further development efforts towards a final investment decision by investing $25M, pursuant to which Mitsui has agreed to subscribe for 12.5M Common Shares in the capital of NMG and 12.5M warrants on the same pricing and other terms as the Tranche 1 Investment. NMG will also enter into an investor rights agreement and registration rights agreement with Mitsui at the closing of their investment. Strategic investor Pallinghurst has also agreed to participate via a $12.5M investment pursuant to which Pallinghurst has agreed to subscribe to 6,250,000 Common Shares and 6,250,000 warrants on the same pricing and other terms as the Tranche 1 Investment. Such warrants are generally exercisable in connection with the Tranche 2 Investment at FID in accordance with their terms. Upon a positive FID, the parties’ commercial relationship is also intended to expand through further investments into NMG as part of the construction financing. Currently, Mitsui may have beneficial ownership of, or control or direction over, directly or indirectly, the Mitsui Convertible Note that can be converted into units comprising an aggregate of 5M Common Shares and 5M Common Share purchase warrants.