SCHEDULE 13D/A: Pallinghurst International Reduces Nouveau Monde Graphite Stake

Sentiment:

Beneficial Ownership Update


Pallinghurst Graphite International has decreased its beneficial ownership in Nouveau Monde Graphite Inc. by 1.00%, falling below the 5% reporting threshold.

Capital raisePallinghurst Bond Limited holds 6,250,000 warrants, each exercisable for one Common Share of NMG.These warrants are connected to a Tranche 2 investment and are exercisable at the final investment decision of NMG, or earlier if NMG issues an acceleration notice.
Worse than expectedA significant institutional investor, Pallinghurst Graphite International, reduced its stake in Nouveau Monde Graphite Inc. by 1.00%.This reduction caused Pallinghurst International's beneficial ownership to fall below the 5% threshold, which is often viewed negatively by the market as it signals a potential decrease in investor confidence or a strategic shift away from the company.

Summary

  • Pallinghurst Graphite International Limited (Pallinghurst International) disposed of 1,528,666 Common Shares of Nouveau Monde Graphite Inc. (NMG) between October 30, 2025, and November 14, 2025.
  • This disposition represents 1.00% of the total outstanding Common Shares of NMG.
  • As a result, Pallinghurst International's beneficial ownership in NMG fell to 5.00% (7,621,381 shares) as of November 14, 2025, ceasing to be a beneficial owner of more than five percent.
  • Pallinghurst Bond Limited (Pallinghurst Bond) continues to beneficially own 13,026,348 Common Shares, representing 8.21% of the class, which includes 6,250,000 warrants exercisable into Common Shares.
  • The transactions by Pallinghurst International occurred in the open market at weighted-average prices ranging from $3.02 to $3.25 per share, with an overall weighted-average price of $3.16.
  • The total outstanding Common Shares of NMG were 152,428,205 as of November 11, 2025.

Sentiment

Score: 3

Explanation: The reduction in a significant investor's stake, particularly falling below a key reporting threshold, is generally perceived negatively by the market, suggesting a potential lack of confidence or a strategic divestment.

Negatives

  • A significant investor, Pallinghurst Graphite International, reduced its stake in Nouveau Monde Graphite Inc. by 1.00%.
  • Pallinghurst Graphite International's beneficial ownership dropped below the 5% threshold, indicating a reduced commitment or a strategic portfolio adjustment.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

  • Shareholders: May view the reduction in Pallinghurst International's stake negatively, potentially leading to downward pressure on the share price due to concerns about investor confidence.

Key Dates

DateDescription
2022-04-01Original Schedule 13D filed with the SEC.
2022-11-15First Amendment to Original Schedule 13D filed.
2024-05-02Second Amendment to Original Schedule 13D filed.
2025-10-29Third Amendment to Original Schedule 13D filed.
2025-10-30Start date of Pallinghurst International's share dispositions.
2025-11-11Date NMG reported 152,428,205 Common Shares outstanding.
2025-11-14Date of event requiring filing of this statement; Pallinghurst International ceased to be a beneficial owner of more than five percent of NMG Common Shares; End date of Pallinghurst International's share dispositions.
2025-11-24Date Amendment No. 4 was signed by Andrew Willis.

Recommendation

hold

While a significant investor reducing their stake and falling below the 5% threshold is a negative signal, Pallinghurst entities (Pallinghurst International and Pallinghurst Bond) still collectively hold a substantial position in Nouveau Monde Graphite Inc. and are party to an investment agreement. The reduction by Pallinghurst International represents 1% of outstanding shares, which is not a complete divestment. Investors should monitor future filings and company performance, but a 'hold' recommendation is appropriate given the continued, albeit reduced, institutional backing and the potential for future warrant exercise.

Keywords

Nouveau Monde Graphite, NMG, Pallinghurst, Graphite, Schedule 13D, Beneficial Ownership, Share Sale, Investor Stake, Mining

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