Gratomic Inc said its previously-announced, non-brokered C$27,020,000 private placement offering is fully-subscribed and the final closing date will be extended until February 8, 2022.
The company said proceeds from the offering will be used as operating capital for its Aukam project ($17 million), exploration for its Grosso property ($6 million), and for general working capital ($4 million).
“It is a testament to the company to receive this level of support from the market, clearly our goal to create value for our shareholders is well received,” Gratomic CEO Arno Brand said in a statement.
READ: Gratomic prepares for final commissioning stage at its Aukam Graphite processing plant in Namibia
“We will maintain our commitment to transparency and thank all of Gratomic's stakeholders for their continued support,” Brand added.
Gratomic noted that the offering consists of 19,300,000 working capital units priced at $1.40 per unit.
Each private placement unit consists of one company common share plus one-quarter of a common share purchase warrant, with each full warrant entitling the holder to purchase one common share, at a price of $1.45 per share, until the date which is six months following the closing of the offering.
As well, Gratomic said eligible finders may receive 5% of the value of proceeds of the sale of the offering units in cash.
It added that it 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.
First Republic will have the right to place up to C$5 million of the offering with its clients and will receive an additional cash fee of 3% in respect of any units placed by First Republic.
Gratomic also noted that company insiders may subscribe for up to 10% of the units under the offering.
All securities issued will be subject to a four-month and one-day hold period.
Gratomic is focused on introducing an exceptional anode material to the global electric vehicle and energy storage supply chains. It is aiming to achieve full operational capabilities in 2022 on its Aukam graphite project and continues to diversify its assets into a multi-national company with various projects globally.
Contact Sean at sean@proactiveinvestors.com