Oaktree Early Warning Press Release Regarding Neo Performance Materials Inc.

LOS ANGELES, Nov. 17, 2021 /CNW/ - Oaktree Capital Management, L.P. ("Oaktree") announced today that, in connection with a treasury and secondary offering of common shares ("Common Shares") of Neo Performance Materials Inc. ("Neo") (TSX: NEO) carried out by way of a short form prospectus of Neo dated November 9, 2021, it disposed of 2,631,000 Common Shares (the "Subject Shares") held through OPPS NPM SARL ("OPPS NPM" or the "Selling Shareholder"), a fund managed by Oaktree (the "Transaction"). The Subject Shares were sold at a price of $19.25 per share for gross proceeds to the Selling Shareholder of approximately $50.65 million. The Transaction, which closed on November 16, 2021, was carried out pursuant to the terms of an underwriting agreement dated October 29, 2021 among Neo, the Selling Shareholder and Paradigm Capital Inc. and Canaccord Genuity Corp., as lead underwriters, and Cormark Securities Inc., Raymond James Ltd., Scotia Capital Inc., and Stifel Nicolaus Canada Inc. (collectively, the "Underwriters").  

Prior to the Transaction, Oaktree (through the Selling Shareholder) held 12,509,155 Common Shares (including the Subject Shares), representing approximately 32.9% of the issued and outstanding Common Shares. Pursuant to the Transaction, OPPS NPM disposed of beneficial ownership of the Subject Shares, representing approximately 6.9% of the issued and outstanding Common Shares (prior to the closing of the Transaction). Following the Transaction, OPPS NPM holds 9,878,155 Common Shares, representing approximately 24.3% of the issued and outstanding Common Shares, and Oaktree (through OPPS NPM) holds 9,878,155 Common Shares, representing approximately 24.3% of the issued and outstanding Common Shares.

The Transaction constituted a public offering of Common Shares and sale of a portion of Oaktree's holdings of Neo. In connection with the Transaction, net proceeds of approximately $48.1 million were paid to, and received by, Oaktree (through OPPS NPM), representing the gross proceeds of the Transaction less the fees paid to the Underwriters by the Selling Shareholder.

Oaktree intends to hold its Common Shares for investment purposes. Oaktree may from time to time, depending on market and other conditions, acquire additional Common Shares or dispose of Common Shares through market transactions, public offerings, private agreement or otherwise.

This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issuers. An early warning report with additional information in respect of the foregoing matters will be filed and made available on the System for Electronic Document Analysis and Review (SEDAR) at www.sedar.com under Neo's issuer profile. 

SOURCE Oaktree Capital Management, L.P.

A copy of such report may also be obtained by contacting Ivan Grbešić of Stikeman Elliott LLP, on behalf of Oaktree, at telephone number [phone].