Zentek completes $2.48 million private placement of units

Zentek Ltd. (NASDAQ: ZTEK) (TSXV: ZEN) completed a non-brokered private placement raising gross proceeds of $2,479,227 through the issuance of 2,338,893 units priced at $1.06 per unit.

Each unit includes 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 until October 22, 2027, while Series B warrants enable purchases at $2.00 until October 22, 2028.

The company can accelerate the Series A warrant expiry if shares trade at $2.00 or higher for 10 consecutive trading days after the four-month hold period. Series B warrants may be accelerated if shares reach $3.00 for 10 consecutive trading days after six months from closing.

Zentek paid finder fees totaling $35,429.33 and issued 33,424 finder warrants exercisable at $1.06 per unit until October 22, 2027. All securities are subject to a four-month-plus-one-day hold period.

Company directors participated in the offering, constituting a related party transaction under securities regulations. The transaction qualifies for exemptions from formal valuation and minority shareholder approval requirements as the consideration does not exceed 25% of the company's market capitalization.

The Guelph, Ontario-based company plans to use proceeds for general and administrative corporate purposes. Zentek operates as an intellectual property development and commercialization company with ISO 13485:2016 certification, focusing on products for commercial partners in filtration and diagnostic markets.

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