Gratomic Inc. (TSX-V:GRAT, OTCQX:CBULF) told investors that it has completed the first tranche of a non-brokered private placement offering of up to 20 million working capital units at $0.30 each for gross proceeds of up to $6 million.
In the first tranche, the company said it placed 4,348,984 units, raising gross proceeds of $1,304,695.20. Each unit consists of one common share and one common share purchase warrant, entitling the holder to buy another share for $0.45 for up to two years after the offer closes.
Gratomic said proceeds from the offering will be used for general working capital and for operating capital for its Aukam graphite project in Namibia.
"It is with great pleasure that I participate in the given offering alongside our shareholders to expedite the completion of the Aukam processing facility,” Gratomic president and CEO Arno Brand said in a statement.
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“The placement is designed to compensate for minor cost over-runs experienced during Covid and supply chain volatility that continues to trouble the world,” Brand added. “With the successful completion of this offering, we foresee a smooth transition into production at the Aukam Graphite project in Namibia."
The company noted that a finder's fee of $25,983 was paid to an eligible intermediary and 86,610 broker warrants were issued. Each broker warrant entitles the holder to purchase one common share for $0.45 until February 1, 2025.
Additionally, it said company insiders may subscribe for up to 25% of the working capital units in the offering, noting that two insiders subscribed for 1,126,700 units for $338,010 on the first closing.
Gratomic said securities issued at the initial closing of the offering are subject to a hold period expiring on June 2, 2023. The final closing of the remainder of the offering is expected in late February 2023 or earlier.
Gratomic has projects in Namibia, Brazil and Canada and is focused on becoming a leading global graphite supplier. The company aims to secure a strong position in the electric vehicle battery supply chain.
Contact the author at stephen.gunnion@proactiveinvestors.com