New Risk • Aug 19
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 44% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 37% per year over the past 5 years. Shareholders have been substantially diluted in the past year (44% increase in shares outstanding). Revenue is less than US$1m (CA$447k revenue, or US$323k). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (CA$29.6m market cap, or US$21.4m). Announcement • Aug 16
NEO Battery Materials Ltd. announced that it has received CAD 4 million in funding On August 14, 2026, Neo Battery Materials Ltd. closed the transaction. The company issued 20,000,000 units at a price of CAD 0.20 for gross proceeds of CAD 4,000,000. Each Unit will consist of one common share of the Company and one non-transferable common share purchase warrant, with each Warrant entitling the holder thereof to acquire one common Share at a price of CAD 0.30 per common Share for a period of 36 months following the closing Date. All other terms of the LIFE Offering remain unchanged. In connection with the LIFE offering, the company paid aggregate cash commissions of CAD 25,680 and issued an aggregate of 128,400 non-transferable finders' warrants to certain eligible finders. Each finder's warrant is exercisable to acquire one common share at a price of CAD 0.20 per common share for a period of 36 months following the closing of the LIFE offering. In accordance with applicable Canadian securities law, the finders' warrants are subject to a four-month-and-one-day hold period, which will expire on December 15, 2026. Announcement • Aug 06
NEO Battery Materials Ltd. announced that it expects to receive CAD 6 million in funding NEO Battery Materials Ltd. announced a non-brokered private placement offering (the "LIFE Offering") to issue 25,000,000 units at an issue price of CAD 0.24 per unit for gross proceeds of CAD 6,000,000 on August 4, 2026. Each Unit will consist of one common share of the Company and one non-transferable common share purchase warrant, with each Warrant entitling the holder thereof to acquire one Common Share at a price of CAD 0.36 per Common Share for a period of 36 months following the Closing Date. Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the Units sold pursuant to the LIFE Offering will be offered to purchasers resident in al provinces and territories of Canada pursuant to the Listed Issuer Financing Exemption and in certain offshore jurisdictions pursuant to available prospectus or registration exemptions in accordance with applicable laws. Subject to the rules and policies of the TSXV, the securities issued under the LIFE Offering will not be subject to resale restrictions in accordance with applicable Canadian securities laws. It is expected that closing of the LIFE Offering will take place on or about August 13, 2026, or such other date(s) as may be determined by the Company (the "Closing Date"). The LIFE Offering may close in one or more tranches. Closing of the LIFE Offering is subject to certain conditions including, but not limited to, the receipt of al necessary approvals, including the approval of the TSXV. The Company may compensate certain eligible finders in connection with the LIFE Offering and may pay a cash commission of up to 6% of the gross proceeds raised from purchasers introduced by such finders and may issue finder's warrants/options equal to up to 6% of the number of Units sold to such purchasers. Each finder's warrant/option will be exercisable to acquire one Common Share at a price of CAD 0.24 for a period of 36 months. 
