Zentek plans private placement to raise up to $2 million

Zentek Ltd. (NASDAQ: ZTEK) (TSXV: ZEN) announced plans to complete a non-brokered private placement to raise up to $2 million through the issuance of up to 1,886,792 units at $1.06 per unit.

Each unit consists of one common share, one-half of a Series A warrant, and one-half of a Series B warrant. The Series A warrants allow holders to purchase common shares at $1.50 for 24 months from closing, while Series B warrants enable purchases at $2.00 for 36 months from closing.

Both warrant series include acceleration provisions. Series A warrants can be accelerated if the company's shares trade at $2.00 or higher for 10 consecutive trading days after four months from closing. Series B warrants can be accelerated if shares reach $3.00 for 10 consecutive trading days after six months from closing.

The company stated it will use gross proceeds for working capital and general corporate purposes. The offering requires corporate and regulatory approvals, including approval from the TSX Venture Exchange.

Separately, Zentek granted stock options to officers, directors, and employees effective October 1, 2025. The options allow purchase of 979,000 common shares at $1.06 per share for five years, with varying vesting schedules. Officers and directors receive options vesting in thirds over two years, while employees receive options vesting in quarters over three years.

The company also granted 779,000 restricted share units to the same groups, vesting on October 1, 2026.

Zentek develops intellectual property technology and holds patents for its ZenGUARD platform, which the company states enhances viral filtration efficiency for surgical masks and HVAC systems. The company operates a production facility in Guelph, Ontario, and holds a global exclusive license to aptamer-based platform technology developed by McMaster University.

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