/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Nov. 16, 2021 /CNW/ - Neo Performance Materials
Inc. ("Neo", the "Company") (TSX: NEO) is pleased to
announce that it has completed the previously announced treasury
and secondary offering (the "Offering") of common shares of
the Company (the "Common Shares") (see press release dated
October 25, 2021). The Company
issued and sold from treasury an aggregate of 2,598,000 Common
Shares at a price of $19.25 per share
for total gross proceeds to the Company of approximately
$50.01 million. A fund managed
by Oaktree Capital Management, L.P. ("Oaktree" or the
"Selling Shareholder") sold an aggregate of 2,631,000 Common
Shares under the Offering at a price of $19.25 per share for total gross proceeds to the
Selling Shareholder of approximately $50.65
million, including the exercise of the over-allotment
option.
The Offering was made, on a bought deal basis, pursuant to an
underwriting agreement dated October 29,
2021 among the Company, the Selling Shareholder and Paradigm
Capital Inc. and Canaccord Genuity Corp., as lead underwriters, and
Cormark Securities Inc., Raymond James Ltd., Scotia Capital Inc.
and Stifel Nicolaus Canada Inc. (collectively, the
"Underwriters").
Following completion of the Offering, the Selling Shareholder
holds an aggregate of 9,878,155 Common Shares, representing
approximately 24.3% of the issued and outstanding Common
Shares. Each of the directors and executive officers of the
Company and the Selling Shareholder and its affiliates have agreed
with the Underwriters that the Common Shares held by each of them
will be subject to a 120-day lock-up period, subject to customary
exceptions.
In connection with the Offering, the Underwriters received a
cash commission equal to 5% of the gross proceeds of the
Offering.
The Common Shares were offered by way of a short form prospectus
in all of the provinces of Canada
other than Quebec. Private
placement offerings in the United
States were made to "qualified institutional buyers"
pursuant to Rule 144A of the United States Securities Act of
1933.
The securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States or to, or for the account or
benefit of, U.S. persons absent registration or an applicable
exemption from the registration requirements. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any
State in which such offer, solicitation or sale would be
unlawful.
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies
that enhance efficiency and sustainability. Neo's advanced
industrial materials - magnetic powders and magnets, specialty
chemicals, metals, and alloys - are critical to the performance of
many everyday products and emerging technologies. Neo's products
help to deliver the technologies of tomorrow to consumers
today. The business of Neo is organized along three segments:
Magnequench, Chemicals & Oxides and Rare Metals. Neo is
headquartered in Toronto, Ontario,
Canada; with corporate offices in Greenwood Village, Colorado, US; Singapore; and Beijing, China. Neo operates globally with
sales and production across 10 countries, being Japan, China,
Thailand, Estonia, Singapore, Germany, United
Kingdom, Canada,
United States, and South Korea. For more information, please
visit www.neomaterials.com.
About Oaktree
Oaktree is a leader among global investment managers
specializing in alternative investments,
with $158 billion in assets under
management as of September 30, 2021.
The firm emphasizes an opportunistic, value-oriented and
risk-controlled approach to investments in credit, private equity,
real assets and listed equities. The firm has over 1,000 employees
and offices in 19 cities worldwide. For additional information,
please visit Oaktree's website at
http://www.oaktreecapital.com/.
Cautionary Statements Regarding Forward Looking
Statements
This news release contains "forward-looking information" within
the meaning of applicable securities laws in Canada. Forward-looking information may relate
to future events or future performance of Neo. All statements in
this release, other than statements of historical facts, with
respect to Neo's objectives and goals, as well as statements with
respect to its beliefs, plans, objectives, expectations,
anticipations, estimates, and intentions, are forward-looking
information. Specific forward-looking statements in this discussion
include, but are not limited to, the following: expectations
regarding certain of Neo's future results and information,
including, among other things, revenue, expenses, sales growth,
capital expenditures, and operations; statements with respect to
current and future market trends that may directly or indirectly
impact sales and revenue of Neo; expected use of cash balances;
continuation of prudent management of working capital; source of
funds for ongoing business requirements and capital investments;
expectations regarding sufficiency of the allowance for
uncollectible accounts and inventory provisions; analysis regarding
sensitivity of the business to changes in exchange rates; impact of
recently adopted accounting pronouncements; risk factors relating
to intellectual property protection and intellectual property
litigation; risk factors relating to national or international
economies (including the impact of COVID-19), and other risks
present in the jurisdictions in which Neo, its customers, its
suppliers, and/or its logistics partners operate, and; expectations
concerning any remediation efforts to Neo's design of its internal
controls over financial reporting and disclosure controls and
procedures. Often, but not always, forward-looking information can
be identified by the use of words such as "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "continues",
"forecasts", "projects", "predicts", "intends", "anticipates" or
"believes", or variations of, or the negatives of, such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will" be taken, occur or be
achieved. This information involves known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information. Neo believes the expectations
reflected in such forward-looking information are reasonable, but
no assurance can be given that these expectations will prove to be
correct and such forward-looking information included in this
discussion and analysis should not be unduly relied upon. For more
information on Neo, investors should review Neo's continuous
disclosure filings that are available under Neo's profile at
www.sedar.com.
SOURCE Neo Performance Materials, Inc.