Nouveau Monde launches public offering, private placement to raise nearly $100m

Following the approval for its US listing last month, Nouveau Monde Graphite Inc. (NYSE: NMG; TSXV: NOU) has launched a proposed underwritten public offering of 7 million common shares in the Canadian and US markets, which would raise approximately C$95 million ($78.1 million) based on the stock’s last closing price on the TSXV.

The company also expects to grant the underwriters a 30-day over-allotment option to purchase up to an additional 15% of the common shares sold under the offering. Evercore ISI and BMO Capital Markets will act as joint book-running managers for the proposed offering.

Shortly following the closing of the offering and after preliminary discussions with shareholders, Nouveau Monde also plans to complete a non-brokered private placement of a maximum of 1.75 million common shares on the same terms as the offering.

Altogether, the company is expected to raise gross proceeds of approximately C$118.7 million ($97.6 million) from the public offering and private placement.

Net proceeds would be used towards the development of its Matawinie graphite property and li-ion battery anode plant, as well as for general working capital and corporate expenses.

The company is working towards developing a fully integrated source of green battery anode material in Québec, with commercial operations targeted by 2023.

Shares of Nouveau Monde dropped 6.7% by noon EST wednesday, giving the company a market capitalization of about C$469.5 million.