Gratomic Inc. (TSX-V:GRAT, OTCQX:CBULF) said it has completed the second tranche of a non-brokered private placement offering of up to 20 million working capital (WC) units at a price of $0.30 each for gross proceeds of up to $6 million.
The second tranche saw the placement of 4,730,951 WC units for gross proceeds of $1,419,285.30. The company has raised $2,723,980.50 to date.
Gratomic said proceeds from the offering will be used for general working capital and for operating capital for the company's Aukam Project.
In a statement, Arno Brand, president and CEO of Gratomic, commented: "It is with great pleasure that I continue to participate in the offering alongside our shareholders."
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Gratomic said insiders of the company may subscribe for up to 25% of the WC units in the offering, noting that one insider subscribed for 747,765 WC units for proceeds of $224,329 on the second closing of the offering. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (MI 61-101).
Each WC unit in the offering consists of one common share and one common share purchase warrant in the company. Each WC warrant entitles the holder to purchase one common share at a price of $0.45 each until March 8, 2025.
A finder's fee of $3,497 was paid to an eligible intermediary and 11,656 broker warrants were issued. Each broker warrant issued entitles the holder to purchase one common share of the company at a price of $0.45 until March 8, 2025.
The securities issued at the initial closing of the offering are subject to a hold period expiring on July 9, 2023. Final closing of the remainder of the offering is expected in mid-March 2023 or earlier.
The securities to be offered under the offering have not been, and will not be, registered under the US Securities Act of 1933, as amended or any US state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the US Securities Act and applicable US state securities laws.
Gratomic is a multinational company with projects in Namibia, Brazil, and Canada. The company is committed to becoming a leading global graphite supplier and aims to establish a strong position in the electric car battery supply chain.
With the ongoing development of its flagship Aukam project and further exploration on the company's Capim Grosso Graphite Project, Gratomic is setting itself apart by seeking unique high-quality assets around the world.
Gratomic remains true to its roots and will continue to explore graphite deposits with development potential. The company ranked third among the top 10 performing TSX Venture 50 mining stocks of 2022.
Contact the author at jon.hopkins@proactiveinvestors.com