Graphene Manufacturing closes $3.45-million financing
2023-08-16 11:52 ET - News Release
Mr. Craig Nicol reports
GRAPHENE MANUFACTURING GROUP ANNOUNCES CLOSING OF $3.45M OVERNIGHT MARKETED OFFERING, INCLUDING EXERCISE IN FULL OF THE OVER-ALLOTMENT OPTION
Graphene Manufacturing Group Ltd. has closed its previously announced overnight marketed public offering of units of the company, including the exercise in full of the overallotment option. A total of 2,029,412 units were sold at a price of $1.70 per unit for gross proceeds of approximately $3.45-million. Each unit comprises one ordinary share of the company and one-half ordinary share purchase warrant. Each warrant shall entitle the holder to purchase one ordinary share of the company at an exercise price of $2.20 per share at any time until Aug. 16, 2027, subject to adjustment in certain events. The offering was completed pursuant to an underwriting agreement dated Aug. 10, 2023, among the company and Raymond James Ltd., as lead underwriter and sole bookrunner, Eight Capital and H.C. Wainwright & Co.
The net proceeds of the offering are expected to be used primarily to strengthen the company's financial position and provide liquidity to finance continuing operations, including, in particular, the company's expenses incurred, and expected to be incurred, in connection with the company's research and development objectives.
In connection with the offering, the company paid the underwriters a cash commission equal to 6 per cent of the gross proceeds of the offering and issued to the underwriters such number of compensation warrants as is equal to 6 per cent of the number of units sold pursuant to the offering. Each compensation warrant is exercisable into a unit at an exercise price of $1.70 until Aug. 16, 2026.
The offering was completed pursuant to a prospectus supplement dated Aug. 10, 2023, to the company's amended and restated base shelf prospectus dated Aug. 2, 2023. Copies of the supplement and the base shelf prospectus can be obtained on SEDAR+.
The TSX Venture Exchange has conditionally approved the listing of the ordinary shares and warrants issued pursuant to the offering, including the warrant shares. The warrants are expected to begin trading on the TSX-V under the symbol GMG.WT on or about Aug. 21, 2023. The warrants are governed by the terms of a warrant indenture dated Aug. 16, 2023, between the company and Computershare Trust Company of Canada, as warrant agent. A copy of the warrant indenture will be available under the company's profile on SEDAR+. For further details regarding the warrants, please refer to the warrant indenture.
About Graphene Manufacturing Group Ltd.
Graphene Manufacturing Group is a disruptive, Australian-based clean-technology company that produces graphene and hydrogen by cracking methane (natural gas) instead of mining graphite. By using the company's proprietary process, Graphene Manufacturing Group can produce high-quality, low-cost, scalable, tunable and no/low-contaminant graphene -- enabling demonstrated cost and environmental improvements in a number of world-scale, planet-friendly/clean-tech applications. Using this low-input-cost source of graphene, the company is developing value-added products that target the massive energy efficiency and energy storage markets. The company is pursuing additional opportunities for Graphene Manufacturing Group graphene, including developing next-generation batteries, collaborating with world-leading universities in Australia, and investigating the opportunity to enhance the performance of lubricant oil and performance-enhanced HVAC-R (heating, ventilation, air conditioning and refrigeration) coating systems.
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