Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) announced that it has increased the size of its previously disclosed bought deal public offering to $C6 million from C$5 million, citing strong investor demand.
Under the revised terms, sole underwriter and bookrunner Red Cloud Securities has agreed to purchase for resale 6,666,667 units of the company at C$0.90 per unit.
Each unit will consist of one common share and one common share purchase warrant. The warrant will entitle the holder to acquire one additional common share at C$1.35 within 36 months of the closing date.
The company has also granted Red Cloud a 30-day overallotment option to purchase up to an additional 15% of the units issued in the offering.
The net proceeds from the offering will support the company’s ongoing operations, including commercial development, product development, and working capital.
The offering is expected to close on or about September 3.
Shares of GMG were up around 3.6% in Thursday afternoon trading in Toronto and 2.9% over the counter in the US.