TORONTO, Dec. 31,
2024 /CNW/ - Neo Performance Materials Inc.
("Neo" or the "Company") (TSX: NEO) announced today
that it has completed the sale of its equity ownership interest
(the "Transaction") in Neo Rare Metals (Oklahoma), LLC ("Quapaw") to Kevin
Reading, the current General Manager and co-founder of the
facility (the "Purchaser").
The Purchaser acquired Neo's 80% equity interest in Quapaw for an aggregate cash purchase price
equal to US$1.5 million. The
Transaction also includes a seven-year agreement wherein
Quapaw will purchase gallium from,
and purchase and transfer gallium scrap to the Company's recycling
facility in Peterborough, Ontario
(see press release dated August 6,
2024).
The completion of this Transaction marks a key step in Neo's
operational transformation, as the Company continues to streamline
its business globally and optimize its asset portfolio to support
its long-term scale and growth ambitions.
"With the completion of this sale, Neo is well positioned to
reinforce our core operations to maximize shareholder value,"
said Rahim Suleman, President and
Chief Executive Officer of Neo. "Mr. Reading has been a valued
partner, and we look forward to continuing our partnership with the
entrepreneurial owner-operator team at Quapaw."
The Quapaw facility is a
leading producer in North America
of gallium trichloride, which is used in applications such as LED
lighting (white LED), lithium batteries, integrated circuit chips,
and capacitors.
Cautionary Statements Regarding
Forward-Looking Statements
This news release may contain "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Generally, but not always, forward-looking information and
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof. Specific
forward-looking statements in this news release include, but are
not limited to, the timing of completion of the Transaction and
matters relating thereto. In making the forward-looking information
in this news release, the Company has applied certain factors and
assumptions that are based on its current beliefs as well as
assumptions made by and information currently available to the
Company. Although the Company considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect, and the forward-looking information in this
release are subject to numerous risks, uncertainties and other
factors that may cause future results to differ materially from
those expressed or implied in such forward-looking
information. There are many risk factors associated with the
completion of the Transaction. A number of factors could
cause actual results to differ materially from those anticipated by
the Company, including but not limited to the risks and
uncertainties inherent in the nature of the Transaction including
the failure to obtain necessary regulatory approvals, or to
otherwise satisfy the conditions of the Transaction, in a timely
manner by the outside date or at all, risks of a material adverse
change the Company's assets or revenues, or risks of unknown
liabilities that may arise.
Readers are cautioned not to place
undue reliance on forward-looking information. The Company does not
intend, and expressly disclaims any intention or obligation to,
update or revise any forward-looking information whether as a
result of new information, future events or otherwise,
except as required by law.
For more information on Neo, investors should
review Neo's continuous disclosure filings that are available
under Neo's profile at www.sedarplus.ca.
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies
that enhance efficiency and sustainability. Neo's advanced
industrial materials - magnetic powders and magnets, specialty
chemicals, metals, and alloys - are critical to the performance of
many everyday products and emerging technologies. Neo's products
help to deliver the technologies of tomorrow to consumers today.
The business of Neo is organized along three segments: Magnequench,
Chemicals & Oxides and Rare Metals. Neo is headquartered in
Toronto, Ontario, Canada; with
corporate offices in Greenwood Village,
Colorado, United States;
Singapore; and Beijing, China. Neo has a global platform that
includes 8 manufacturing facilities located in China, the United
States, Germany,
Canada, Estonia, Thailand and the United Kingdom, as well as one dedicated
research and development centre in Singapore. For more information, please
visit www.neomaterials.com.
SOURCE Neo Performance Materials, Inc.