Canadian mining company Neo Performance Materials (NEO) is raising $67.5 million by issuing
4.5 million additional shares priced at $15.00 each.
The Toronto-based processor of rare metals and industrial magnets is undertaking the share
sale after its stock rose 15% late last week on news that Australia’s Hastings Technology Metals
(HAS) bought a 22.1% stake in the company by purchasing nine million Neo shares at a total
cost of $135 million.
Hastings Technology paid $15.00 a share for Neo Performance stock, according to the two
companies.
Hastings Technology was supported in the purchase of Neo Performance stock by privately
held Wyloo Metals, which bought $135 million of new exchangeable notes.
Neo Performance said proceeds from its share sale will be used to fund the company’s growth,
as well as for general corporate purposes.
Despite the rally late last week, Neo Performance’s stock is down 16% this year and trading at
$16.63 per share. Hastings Technology’s stock is down 95% year-to-date and trading at $4.97
(Australian dollars).
