Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) announced it has commenced a marketed offering of units of the company to raise approximately $2 million.
The company said it will issue 4,762,000 units at $0.42 per unit.
Each unit will consist of a share and a share purchase warrant, entitling the holder to acquire a share at $0.55 for four years from the offering’s closing date.
The offering is expected to close on or about May 7, 2024.
The proceeds of the offering are expected to be used to strengthen the company’s financial position and provide liquidity to finance its ongoing operations, including expenses expected to be incurred related to its research and development goals.
PI Financial Corp is acting as the sole underwriter and bookrunner for the offering.
The company intends to grant the underwriter an option to purchase up to an additional 15% of units to cover over-allotments and for market stabilization purposes.
GMG said it will pay the underwriter a cash commission equal to 7% of the gross proceeds of the offering, including proceeds from the exercise of the over-allotment option.
It will also issue the underwriter compensation warrants to purchase up to 7% of the aggregate units issued per the offering, allowing the underwriter to purchase a unit at the offering price at any time before two years from the closing date.
- Updated with pricing details -