Nouveau Monde Graphite Inc. (“NMG” or the “Company”) announces the payment of accrued interests as part of a previously announced private placement.
Settlement of accrued interests
Upon the approval of the TSX Venture Exchange and the New York Stock Exchange (the “Exchanges”), the accrued interests owed to Investissement Québec, Pallinghurst Bond Limited and Mitsui & Co., Ltd. (the “Holders”) for the first quarter of 2023 under the unsecured convertible notes (the “Notes”) issued in connection with the private placement announced by press release dated November 8, 2022 will be deemed paid.
234,039 common shares at a price of US$5.11 (each, a “Common Share”) representing an aggregate amount of US$1,195,938 will be issued and share certificates will be delivered to the Holders at the maturity or conversion of the Notes in payment of the accrued interests due on March 31, 2023 for the first quarter of the year. The issuance of Common Shares is subject to the approval of the Exchanges and, when issued, will be subject to a hold period of four (4) months and one day.
Amended and Restated Notes
In addition, NMG will, subject to the approval of the Exchanges, amend and restate the Notes by (i) removing the interest capitalization provisions, such that accrued interest will be deemed paid in full at each quarter following the Exchanges approval, (ii) increasing the interest rate to the greater of (a) 7% and (b) the 3-month Term SOFR plus 5% and (iii) permitting NMG to deliver share certificates to the Holders upon maturity, conversion or redemption, as the case may be, of the Notes.
