Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) told investors that due to higher demand its previously announced marketed offering has been increased from $2 million to $3.024 million.
The company said that in connection with the offering it has entered into an underwriting agreement with underwriter PI Financial Corp to issue 7.2 million units at $0.42 per unit for approximate gross proceeds of $3.024 million.
Each unit will consist of a share and a share purchase warrant, with the warrant entitling the holder to acquire a share at $0.55 for a period of four years from the closing of the offering.
The underwriter has been granted an option to purchase up to an additional 15% of the units sold to cover over-allotments and for market stabilization purposes.
The proceeds of the offering will be used to strengthen GMG’s financial position and provide liquidity to its ongoing operations, including expenses related to its research and development objectives.
The company expects the offering to close on or about May 7, 2024.