Graphene Manufacturing Group Ltd (TSX-V:GMG, OTC:GMGMF) (GMG) has announced that it is commencing a marketed offering of units of the company, with each unit consisting of a common share and one-half of a share purchase warrant.
The company said in a statement that the size of the offering and certain terms of the units and warrants, including the term and exercise price of each warrant, will be determined by the market context at the time of pricing.
The proceeds will be used to strengthen the company’s financial position and provide liquidity to finance its ongoing operations, including expenses incurred and expected to be incurred in connection with its research and development objectives, in addition to for working capital and general corporate purposes.
GMG has tapped Raymond James (NYSE:RJF) to act as the sole bookrunner for the offering on behalf of a syndicate of underwriters.
It intends to grant to underwriters an option to cover over-allotments and for market stabilization purposes, exercisable at any time up to 30 days following closing, to purchase up to an additional 15% of the units, per the terms and conditions of the offering.
The underwriters will be paid a cash commission equal to 6% of the gross proceeds of the offering, including proceeds from the exercise of the over-allotment option, GMG said.
GMG is a disruptive Australian-based clean-tech company listed on the TSXV (TSXV: GMG) that produces graphene and hydrogen by cracking methane (natural gas) instead of mining graphite.
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