GUELPH, ONTARIO - Zentek Ltd. (NASDAQ: ZTEK) (TSXV: ZEN), a company specializing in intellectual property development and commercialization, has announced an increase in its non-brokered private placement offering. Initially disclosed on July 31, 2024, the offering has been upsized to 2,361,538 units at $1.30 each, aiming to raise total gross proceeds of approximately $3.07 million.
Each unit in this offering comprises one common share and a half warrant, where a full warrant allows the holder to purchase an additional common share at $3.00 within a 24-month period from the offering's closing date. The intended use for the net proceeds includes working capital and general corporate purposes.
Zentek has also stated that certain eligible finders may receive a cash commission equivalent to 5% of the gross proceeds raised from subscribers they introduce. The completion of the offering is contingent upon obtaining all necessary corporate and regulatory approvals, including the TSX Venture Exchange's nod.
Securities issued will be subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities laws. This news release does not represent an offer to sell securities in the United States, which are not registered under the U.S. Securities Act and are subject to specific registration exemptions.
Zentek is known for its ZenGUARD™ technology, which has demonstrated 99% anti-microbial effectiveness and is designed to enhance the viral filtration efficiency of surgical masks and HVAC systems. The company operates a production facility for ZenGUARD™ in Guelph, Ontario.
This information is based on a press release statement and investors are advised that the company's forward-looking statements involve risks and uncertainties. There is no assurance that the anticipated events will occur as projected or at all. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this content.
In other recent news, Zentek Ltd. announced its intention to raise $3 million through a private placement, planning to issue up to 2.3 million units at a price of $1.30 each. The units consist of one common share and a half warrant, with each full warrant granting the holder the right to purchase an additional common share at $3.00 within a 24-month period. The closing of this offering is contingent upon obtaining necessary corporate and regulatory approvals.
These recent developments also include significant progress by the company's subsidiary, Triera Biosciences Ltd., in the development of a treatment and prevention strategy for the H5N1 avian influenza. Initial tests have shown promising results for a universal influenza aptamer, potentially demonstrating stronger binding affinity than existing treatments for SARS-CoV-2.
In addition, Zentek Ltd. recently announced changes in its leadership team, with Dr. Francis Dubé stepping down as Chief Operating Officer, and Brian Bosse resigning from his director role. Both Dubé and Bosse will continue to be involved with the company, with Bosse moving to an advisory board position.
InvestingPro Insights
Zentek Ltd. (NASDAQ: ZTEK), with its recent announcement of upscaling its non-brokered private placement offering, has shown proactive steps in securing its financial position for future operations. InvestingPro data reveals some critical insights into the company's financial health and market performance. As of the last twelve months leading up to Q1 2023, Zentek has a market capitalization of $93.72 million and has been trading near its 52-week low, with a previous close price of $0.95.
InvestingPro Tips suggest that Zentek is a niche player in its industry and has been operating without profitability over the last twelve months. Moreover, the company's gross profit margin is notably weak, registering at -1146.97% in the same period. This indicates challenges in generating income relative to the cost of goods sold, a factor that potential investors should consider. Despite these figures, Zentek maintains a moderate level of debt and its liquid assets exceed short-term obligations, providing some financial stability.
Investors may also note that Zentek does not pay dividends, which could influence the investment decisions of those seeking regular income streams. For more detailed analysis and additional InvestingPro Tips, interested parties can explore the full suite of metrics and tips available on InvestingPro, which includes 11 more insights for ZTEK at https://www.investing.com/pro/ZTEK.
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