Nouveau Monde Graphite Inc. (NMG) PT Lowered to $3.25 at H.C. Wainwright

H.C. Wainwright analyst Heiko Ihle lowered the price target on Nouveau Monde Graphite Inc. (NYSE: NMG) to $3.25 (from $8.00) while maintaining a Buy rating.

The analyst commented: "On May 2, 2024, NMG announced the closing of a private placement for 18.8M common shares and 18.8M warrants in the company for gross proceeds of $37.5M. The deal was struck with Mitsui & Co., Ltd. (8031.T; not rated) and Pallinghurst Bond Limited (private). In short, Pallinghurst purchased 6.3M common shares and 6.3M warrants for $12.5M, which NMG then used to repurchase an unsecured convertible note from Pallinghurst. In addition, we note that Mitsui received 12.5M common shares and 12.5M warrants for $25.0M, with the funds used by NMG to repurchase its convertible note as well. In our view, this funding inspires strong institutional-grade investor confidence in the company and should allow management to partner with additional major global powerhouses. Reiterate Buy rating while lowering PT to $3.25 from $8.00."

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