Neo Lithium closes strategic investment with CATL; ~8% stake; 3Q project
Canada-based Neo Lithium Corp. (NLC) announced the closing of a previously announced equity investment by China-based Contemporary Amperex Technology Co. Limited (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 per common share for gross proceeds to Neo Lithium of C$8,582,702 (US$6.7 million), representing approximately 8% of issued and outstanding shares of the Neo Lihtium.
The common shares issued to CATL are subject to a 4-month statutory hold period expiring on 15 April 2021. With the proceeds of the equity investment from CATL, Neo Lithium has a net cash position of approximately C$35 million (US$27 million).