SCHEDULE: Canada Growth Fund Increases Stake in NMG

Canada Growth Fund Inc. has disclosed an agreement to acquire an additional 44.45 million shares of Nouveau Monde Graphite Inc. for approximately US$81.8 million.

Summary

• Canada Growth Fund Inc. (CGF) and its manager, Canada Growth Fund Investment Management Inc., filed an amendment to their Schedule 13D regarding their holdings in Nouveau Monde Graphite Inc. (NMG).
• CGF has entered into a subscription agreement dated April 9, 2026, to purchase 44,452,460 common shares of NMG for a total of US$81,792,526.40.
• The transaction is subject to NMG shareholder approval.
• Upon completion, this investment represents approximately 27.7% of the then-outstanding common shares.
• CGF currently holds 39,682,538 shares (including warrants), representing a 22.0% stake based on current calculations.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive development, as it secures significant non-dilutive-style institutional backing for NMG's operations, despite the inherent dilution for existing shareholders.

Positives

• Significant capital injection of US$81.8 million from a major institutional investor, Canada Growth Fund.
• Strengthened strategic partnership with a government-backed investment vehicle.
• Increased institutional ownership and long-term commitment to NMG's business model.

Negatives

• Potential for significant shareholder dilution upon the issuance of 44.45 million new common shares.
• The transaction remains subject to NMG shareholder approval, introducing execution risk.

Risks

• Market conditions may impact the value of the investment and the future strategy of the reporting persons.
• The investment is subject to regulatory and shareholder approval processes.
• The reporting persons reserve the right to increase, decrease, or change their investment strategy at any time.

Future Outlook

The reporting persons intend to monitor their investment on an ongoing basis and may engage in discussions with management regarding business, operations, and board composition. They may seek to acquire additional shares or dispose of existing holdings depending on market conditions.

Management Comments

• The Reporting Persons will evaluate their investment in NMG from time to time and may at any time, based on such evaluation, market conditions and other circumstances, increase or decrease their security holdings in NMG or may change their investment strategy.

Industry Context

StockSavvy.ai notes that this investment underscores the strategic importance of domestic graphite supply chains for the battery and EV sector, with government-backed funds like the Canada Growth Fund prioritizing critical mineral security.

Comparison to Industry Standards

• The investment structure is consistent with typical private placement agreements for junior mining companies seeking to fund large-scale infrastructure projects.
• The inclusion of board representation and observer rights is standard for significant institutional investors in the critical minerals sector.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Potential dilution from the issuance of new shares.
• Company: Strengthened balance sheet and strategic alignment with government-backed capital.

Next Steps

• Obtain NMG shareholder approval for the 2026 private placement.
• Election of Hubert T. Lacroix to the board at the 2026 annual general meeting.

Key Dates

Recommendation

While the capital raise provides necessary funding, the significant dilution and reliance on shareholder approval suggest a wait-and-see approach until the transaction is finalized.

Keywords

Nouveau Monde Graphite, Canada Growth Fund, Private Placement, Graphite, NMG, Institutional Investment, Schedule 13D