SCHEDULE: Canada Growth Fund Ups Stake in Nouveau Monde Graphite

Canada Growth Fund Inc. and its manager, Canada Growth Fund Investment Management Inc., have disclosed an increased beneficial ownership of Nouveau Monde Graphite Inc. (NMG) shares, now representing 22.0% of the class.

Summary

• Canada Growth Fund Inc. (CGF) and its investment manager, Canada Growth Fund Investment Management Inc. (CGFIM), have filed an amendment to their Schedule 13D, reporting their beneficial ownership of Nouveau Monde Graphite Inc. (NMG) shares.
• As of April 6, 2026, CGF beneficially owns 39,682,538 common shares of NMG, which represents 22.0% of the outstanding class.
• This ownership includes shares acquired through a private placement and the exercise of warrants.
• The reporting persons acquired these shares for investment purposes and may evaluate their investment, potentially increasing or decreasing their holdings or changing their investment strategy.
• CGF has information and access rights to NMG's books and records and the right to appoint one board member and one board observer.
• CGF intends to nominate a director candidate for election at NMG's 2026 annual general meeting.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive filing, reflecting increased strategic investment and potential for enhanced governance through board representation, indicating confidence in NMG's long-term prospects.

Positives

• Canada Growth Fund Inc. has increased its investment in Nouveau Monde Graphite Inc., indicating confidence in the company's future prospects.
• The increased stake of 22.0% signifies a significant commitment and potential for influence.
• CGF has secured rights for board representation and access to company information, suggesting a more involved and strategic partnership.
• The acquisition of shares was for investment purposes, aligning with the ordinary course of business for CGF.

Negatives

• The filing does not explicitly state any negative financial or operational results for Nouveau Monde Graphite Inc.

Risks

• The reporting persons may increase or decrease their security holdings in NMG or change their investment strategy based on market conditions and other circumstances.
• Future actions regarding NMG's securities could include open market purchases, block trades, privately negotiated transactions, tender offers, mergers, or reorganizations.
• The reporting persons may dispose of all or a portion of their securities or enter into derivative transactions.

Future Outlook

The reporting persons will continuously evaluate their investment in NMG and may, based on such evaluation, market conditions, and other circumstances, increase or decrease their security holdings or change their investment strategy. They may also engage in discussions with management and other parties concerning NMG's business, operations, board composition, management, strategy, and future plans, provided such discussions do not create a 'group'. Future actions could include acquiring additional securities through various means or disposing of existing holdings.

Management Comments

• The Purchased Shares and Warrant Shares were acquired by CGF for investment purposes in the ordinary course of its business.
• 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 as regards to NMG.
• The Reporting Persons intend to monitor and evaluate the investment on an ongoing basis and expect regularly to review and consider alternative ways of maximizing its return on such investment, depending on prevailing market conditions, other investment opportunities, liquidity requirements or other investment considerations the Reporting Persons deem relevant.
• The Reporting Persons may engage in discussions with management, the board of directors of NMG, other shareholders of NMG and other relevant parties concerning the business, operations, board composition, management, strategy and future plans of NMG only to the extent such discussions do not create a 'group' within the meaning of Section 13(d)(3) of the Exchange Act.
• The Reporting Persons may from time to time in the future seek to acquire, alone or in conjunction with others, additional Common Shares or other securities issued by NMG through open market purchases, block trades, privately negotiated transactions, tender offer, merger, reorganization or otherwise.
• The Reporting Persons may also dispose of all or a portion of the securities of NMG, in open market or privately negotiated transactions, and/or enter into derivative transactions with institutional counterparties with respect to the Common Shares, in each case, subject to limitations under applicable law and any other required approvals.
• CGF has the right to appoint one member of the board and one board observer.
• CGF has appointed one board observer and intends to nominate one director candidate to stand for election at NMG's 2026 annual general meeting of shareholders.
• Except as described in this Amendment No. 2, the Reporting Persons do not have any present plans or proposals that relate to or would result in any of the actions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D, although the Reporting Persons, at any time and from time to time, may review, reconsider and change its position and/or change its purpose and/or develop such plans and may seek to influence management or the Board with respect to the business and affairs of NMG and may from time to time consider pursuing or proposing such matters with advisors, NMG or other persons.

Industry Context

StockSavvy.ai notes that this filing indicates a significant investment by Canada Growth Fund Inc. in Nouveau Monde Graphite Inc., a company involved in the critical minerals sector, specifically graphite. This aligns with broader industry trends focused on securing supply chains for materials essential to electric vehicle batteries and renewable energy technologies. The increased stake and board representation rights suggest a strategic interest beyond passive investment, potentially influencing NMG's development and market positioning within the competitive graphite production landscape.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Increased investment by a significant fund may signal confidence, potentially impacting share price positively. However, potential future actions by CGF (e.g., increasing or decreasing holdings, strategic shifts) could also introduce volatility.
• Management and Board of Directors of NMG: CGF's increased stake and rights to board representation and information access will likely lead to closer scrutiny and potential influence on strategic decisions and governance.
• Creditors: A stable or growing investor base like CGF could be viewed positively, potentially enhancing NMG's financial stability and access to capital.

Next Steps

• CGF intends to nominate one director candidate to stand for election at NMG's 2026 annual general meeting of shareholders.
• Reporting persons will continue to monitor and evaluate their investment in NMG.
• Reporting persons may engage in discussions with NMG's management and board regarding business, operations, strategy, and future plans.
• Reporting persons may seek to acquire additional NMG securities or dispose of existing holdings.

Key Dates

Recommendation

The filing indicates a significant investment and increased influence by Canada Growth Fund Inc. in Nouveau Monde Graphite Inc., which is a positive development. However, the filing primarily details ownership changes and future intentions rather than specific operational or financial performance updates. The reporting persons' stated intent to continuously evaluate their investment and potentially alter their strategy warrants a 'hold' recommendation pending further clarity on NMG's operational progress and the impact of CGF's increased involvement.

Keywords

Nouveau Monde Graphite Inc., Canada Growth Fund Inc., Schedule 13D, Beneficial Ownership, Investment, Warrants, Private Placement, Board Representation, Securities, Graphite