Zentek raises C$15 million in oversubscribed private placement

Zentek Ltd. (NASDAQ: ZTEK) announced its private placement offering raised the maximum C$15 million and was oversubscribed. The company sold 15 million units at C$1.00 per unit through Red Cloud Securities Inc., which served as sole agent and bookrunner.

Each unit consists of one common share and one warrant. The warrants allow holders to purchase additional shares at C$1.50 each within 36 months of closing. Red Cloud received an option to sell up to 3 million additional units for extra proceeds of C$3 million.

"The level of interest in this Offering reflects the institutional confidence in the value-creation path we have built across Albany Graphite, ZenGUARD and Triera over the past six months," said Mohammed Jiwan, chief executive officer of Zentek.

The company plans to use proceeds for developing its Albany Graphite Project, including completing a preliminary economic assessment by Micon International Limited and advancing feasibility study work. Funds will also support commercialization of the ZenGUARD platform and general corporate purposes.

The offering targets small modular reactor developers, national defense users and other markets requiring ultra-high-purity graphite. Units were sold under the listed issuer financing exemption in British Columbia, Alberta, Manitoba, Saskatchewan and Ontario.

The offering is expected to close around May 27, 2026, subject to regulatory approvals including TSX Venture Exchange approval. Zentek develops graphene-enabled and advanced material technologies across clean air, next-generation materials and critical minerals sectors.

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