Graphene Manufacturing Group Ltd (TSX-V:GMG, OTC:GMGMF) told investors it has closed its previously announced overnight marketed public offering of units, including an exercise in full of the over-allotment option.
The advanced materials company sold a total of 2,029,412 units at C$1.70 each for gross proceeds of approximately C$3.45 million.
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 four years post the offering's closure.
The company said the net proceeds will be used primarily to strengthen its financial position and provide liquidity to finance ongoing operations, most notably for research and development.
It paid the underwriters a cash commission equal to 6% of the gross proceeds of the offering and issued them compensation warrants equal to 6% of the number of units sold under the offering. Each compensation warrant is exercisable into a unit at an exercise price of C$1.70 per unit until August 16, 2026.
Graphene Manufacturing Group 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.
Contact the author at stephen.gunnion@proactiveinvestors.com