Neo Performance Materials to Invest in Singapore EntityI ran this past a broker who couldn't figure out what the release was about either so it just wasn't me who couldn't figure it out .
JUdging by the 5% gain , there are people who did so.
Here's my take on it after talking to investor relations, NEO formed a corporation, Magnet Ventures , based in Singapore, to fund the building of the plant in Estonia. They also have an corporate partner buying 30%.
US$84.7 million is the company's share.
Would it have been so hard to say it like this? instead of TORONTO , June 12, 2023 /CNW/ - Neo Performance Materials Inc. (" Neo " or the " Company ") ( TSX: NEO ) has entered into a subscription agreement providing for the purchase of up to US$84.7 million of ordinary and preference shares of its wholly-owned direct subsidiary, Magnet Ventures Pte Ltd. (" Magnet Ventures ") over the course of several tranches, and subject to certain conditions precedent. Magnet Ventures is the sole shareholder of NPM Narva OU. The first tranche in the amount of US$15.4 million is expected to be funded no later than mid-July 2023 . Concurrent with Neo's investment, a third-party minority shareholder will also invest in Magnet Ventures. Following the completion of the funding of Magnet Ventures, Neo will hold a 70% interest in the outstanding ordinary shares of Magnet Ventures and the minority shareholder will hold a 30% interest. Concurrent with the entering into of the subscription agreement, Neo and the minority shareholder of Magnet Ventures entered into a shareholders' agreement in regards to Magnet Ventures which provides for the terms of the relationship and the operating parameters of the company, including pre-emptive rights, rights of first refusal on transfers of shares, restrictive covenants, and restrictions on the transfer of shares of Magnet Ventures. The shareholders' agreement becomes effective on the completion of the first tranche of funding.
JMO