Gratomic Inc. (TSX-V:GRAT) revealed that due to significant demand it has increased the size of its previously announced non-brokered private placement offering to $27 million from $20 million.
The increased offering will consist of up to 19.30 million working capital units priced at $1.40 each for gross proceeds of up to $27 million.
The Toronto-based advanced materials company said that $17 million from the proceeds would be used as operating capital for the company's Aukam Graphite project in southern Namibia, $6 million would be funneled into exploration at the firm’s Capim Grosso property in Brazil, and the rest would add to general working capital.
The firm said that each working unit consists of one common share and one-quarter of a common share purchase warrant. Each full warrant entitles the holder to purchase one share at a price of $1.45 per working capital warrant share until six months following the closing of the offering.
READ: Gratomic diversifying its portfolio with intended acquisition of Capim Grosso Property in Brazil
Eligible finders may receive, in cash, 5% of the value of proceeds of the sale of working capital units. The company has agreed to pay First Republic Capital Corporation a corporate finance fee equal to 2% of the gross proceeds of the offering as consideration for waiving its right of first refusal related to the offering. First Republic will have the right to place up to $5 million of the offering with its clients and will receive an additional cash fee of 3% related to any working capital units it places.
The offering is subject to TSX Venture Exchange approval and the securities issued will be subject to a four-month and one-day hold period.
“Insiders of the company may subscribe for up to 10% of the working capital units under the offering,” said the company.
Gratomic is soon to be one of the largest vein graphite producers and has set its sights on becoming a key player in the electric vehicle (EV) and energy storage supply chain. The advanced materials company is focused on low-cost mine to market commercialization of carbon-neutral, eco-friendly, high purity vein graphite.
The company's recent collaboration agreement with Forge Nano has advanced the developments on its graphite finalization phase for the micronization and the patented ALD coating of its Aukam vein graphite for use in lithium-ion batteries.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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