Zentek Plunges 14.51% Amid Grant Win, Regulatory Hurdles

On September 3, 2025, Zentek's stock price experienced a significant drop of 14.51% in pre-market trading, raising concerns among investors about the company's recent developments and future prospects.

Zentek's Albany Graphite Corp., a subsidiary of the company, has been awarded a $500,000 grant from the Ontario Government’s Critical Minerals Innovation Fund (CMIF) for a purification project. This grant is expected to support the development of advanced graphite purification technologies, which could enhance the company's competitive edge in the market.

In addition to the grant, Zentek has been actively preparing for its September 2025 shareholder meeting, which is expected to address key strategic initiatives and provide updates on the company's financial performance. The meeting will also discuss the recent management transition, including the appointment of a new CEO to drive commercialization efforts.

Zentek has also received a notification from Nasdaq regarding a bid price deficiency, which could impact the company's listing status. This notification comes as Zentek continues to navigate regulatory challenges, including a recent letter from Health Canada regarding the regulatory pathway for its ZenGUARD™ Air Filters. The company is actively seeking new regulatory pathways to ensure compliance and market access for its innovative products.

Despite these challenges, Zentek has made significant progress in the development of its ZenGUARD™ Enhanced Air Filters, which have achieved breakthroughs in viral filtration efficiency. The company has also entered into an agency agreement with RSK Environment to expand the global reach of its air filters, further strengthening its market position.