Elmet Group Subscribes to 3.5M Units of Blue Moon Metals for CAD 10.00 Each

The Elmet Group Co. has entered into a definitive subscription agreement with Blue Moon Metals Inc. and its affiliates to acquire newly issued equity in Blue Moon. The transaction, valued at CAD 10.00 per unit, was executed on October 16, 2026, and closed on the same date. The purchase agreement was previously disclosed in an 8-K filed on September 14, 2026.

Under the terms of the agreement, the Company purchased 3,500,000 units. Each unit consists of one common share of Blue Moon and one warrant to purchase an additional common share. The total investment, referred to as the BM Investment, is priced at CAD 10.00 per unit.

The warrants issued to Elmet are exercisable at an initial price of CAD 10.80 per share, beginning four months after issuance on February 17, 2027. These warrants expire on October 16, 2029. The Company has the option to exercise the warrants on a cashless basis, and any unexercised warrants will automatically be exercised in this manner upon expiration. The number of shares obtainable through warrant exercise is subject to customary adjustments for stock dividends and splits.

Elmet also entered into an Investor Rights Agreement with Blue Moon. This agreement grants the Company a participation right to purchase additional equity in future offerings, provided the Company maintains at least 40% ownership of its initial investment. Additionally, the agreement includes a top-up right, allowing Elmet to purchase shares to offset dilution caused by future issuances that would reduce its ownership percentage by at least 1.0%. The Company has the right to designate a nominee to serve on the Blue Moon Board of Directors, and Blue Moon has agreed to appoint the initial nominee within ten days of the agreement's signing.

In related news, the Company held a Special Meeting of Stockholders on October 19, 2026. With a record date of August 28, 2026, there were 30,459,498 shares issued and outstanding. At the meeting, stockholders approved the adoption of the The Elmet Group Co. 2026 Employee Stock Purchase Plan.