Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) has raised nearly C$586,000 in net proceeds from its at-the-market share offering, as the Australian cleantech company looks to bolster its commercial development plans.
The share sales took place during the three months to the end of September under a program launched in July that allows the company to sell up to C$20 million worth of shares into the market at its discretion.
These kinds of “at-the-market” or ATM offerings are often used by smaller companies to raise capital gradually without committing to a large, single equity financing round.
GMG issued just over 632,000 shares on the TSX Venture Exchange during the quarter, at an average price of C$0.96 each.
The update comes as GMG continues to develop its graphene-based technology. The company has created a proprietary process to extract graphene from natural gas by breaking down methane into carbon and hydrogen.
That carbon is used to produce graphene, a lightweight material known for its strength and conductivity, which GMG claims can be manufactured at low cost and with minimal contamination.
Right now, the company is focused on two major product areas. One is energy-saving applications like coatings for heating and cooling systems, as well as lubricants and fluids.
The other is energy storage, where GMG is working with the University of Queensland and support from the Australian government to develop graphene-aluminium ion batteries.
These batteries are pitched as a potential alternative to lithium-ion cells, which dominate the market but come with environmental and supply-chain concerns. GMG says its batteries offer faster charging and longer life, although they are still in the development phase.
The company hasn't said how it plans to spend the proceeds from this quarter’s ATM sales, but in past updates has pointed to a need to fund ongoing research, development, and scale-up efforts.
There’s still C$19.4 million left under the ATM program. How much of that GMG ultimately taps will likely depend on market conditions — and investor appetite for the company’s graphene-powered ambitions.