Zentek completes C$18 million private placement financing

Zentek Ltd. (NASDAQ: ZTEK) announced the completion of its private placement offering that raised gross proceeds of C$18 million. The company sold 18 million units at C$1.00 per unit, with Red Cloud Securities Inc. serving as sole agent and bookrunner.

Each unit consists of one common share and one warrant. The warrants allow holders to purchase additional common shares at C$1.50 until May 27, 2029.

The company plans to use the net proceeds for several purposes: developing the Albany Graphite Project including completion of a new Preliminary Economic Assessment by Micon International Limited, advancing preliminary feasibility study work, continuing commercialization of its ZenGUARD platform, payment obligations, and general working capital.

"Closing this financing reflects confidence in the value-creation path we have built across Albany Graphite, ZenGUARD, and Triera since December," said Mohammed Jiwan, Chief Executive Officer. "With the financing in place, we are well-capitalized to advance our near-term priorities."

Company insiders participated in the offering for 695,000 units. Red Cloud received a cash fee of C$1,197,360 and 1,197,360 broker warrants as compensation.

The units were issued to Canadian purchasers under the listed issuer financing exemption and to international investors through private placement exemptions. Securities issued to insiders are subject to a hold period until September 28, 2026.

The transaction remains subject to final approval from the TSX Venture Exchange. The company operates in graphene-enabled materials and critical minerals, with core platforms including Albany Graphite, ZenGUARD, and Triera.

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