Graphene Manufacturing Group Ltd (TSX-V:GMG, OTC:GMGMF) unveiled the pricing details for a $3 million offering of units.
The advanced materials company is set to issue 1,764,706 units priced at $1.70 each, which is expected to yield approximately $3 million in aggregate gross proceeds.
In a statement, Graphene Manufacturing Group, or GMG, said the proceeds will be used primarily to strengthen its financial position and provide liquidity to finance ongoing operations, most notably for research and development.
The company produces graphene and hydrogen by cracking methane, or natural gas, instead of mining graphite. Its proprietary process can produce high quality, low cost, scalable, ‘tuneable’ and low contaminant graphene.
Under the term sheet, each unit consists of a common share of the company and a one-half ordinary share purchase warrant, with each full warrant allowing the holder to acquire an additional common share at $2.20 per share over the course of four years post the offering's closure.
Underwriters led by Raymond James (NYSE:RJF) are granted an overallotment option, permitting them to purchase up to an additional 15% of the units post-offering closure.
The offering is expected to conclude around August 16, 2023.
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