Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) is raising fresh investment via a C$5 million bought deal, giving investors a new entry point into the Australia-based clean-tech firm as it works to commercialize its graphene-based products.
The company said Wednesday it has struck a deal with Red Cloud Securities to sell 5.56 million units at C$0.90 each.
Each unit includes one share and a warrant that allows the holder to buy another share at C$1.35 over the next three years.
Red Cloud has also been granted an option to purchase up to 15% more units to cover over-allotments.
The financing is expected to close around September 3, pending regulatory approvals.
Proceeds will go toward product development, commercialization, and general working capital.
GMG produces graphene by breaking down methane into carbon and hydrogen, and is advancing energy-saving coatings and next-generation battery technology through collaborations, including one with the University of Queensland, Australia.