Black Swan Graphene (TSX-V:SWAN) announced a non-brokered private placement to raise C$6 million to support the company’s production expansion and global sales efforts.
Proceeds from the placement will fund the acquisition and installation of additional equipment at the company’s Consett, UK facility, increasing annual production capacity from 30 to 40 tonnes to 140 tonnes.
The funds will also support hiring in sales and operations, expanding distribution channels, and covering general corporate purposes, according to a statement from Black Swan.
"We are on the brink of a transformative period in Black Swan's growth story,” said CEO Simon Marcotte.
“This financing will strengthen our balance sheet, enable us to scale up our operations, broaden our global reach, and capitalize on the immense potential of our graphene-enhanced solutions.”
The financing will involve issuing 12 million post-consolidation units at C$0.50 each, with each unit consisting of one common share and half a warrant. Each full warrant allows the holder to buy an additional share at C$1 within 18 months of closing.
Prior to the offering, Black Swan will consolidate its shares on an eight-to-one basis.
The company aims to expand the commercialization of its Graphene Enhanced Masterbatch (GEM) technology, targeting growing demand for graphene-enhanced materials in concrete and other industries.
“We believe the GEM strategy is instrumental in helping us maximize the adoption and impact of our graphene-enhanced materials,” Marcotte added.