Graphene Manufacturing Group Ltd (TSX-V:GMG, OTC:GMGMF) (GMG) has announced plans to raise gross proceeds of $5,002,250 via a bought deal unit offering.
GMG said it has entered into an agreement pursuant to which Eight Capital as lead underwriter and sole bookrunner, together with a syndicate of underwriters, will purchase 1,819,000 units of the company, on a “bought deal” basis, at a price per unit of $2.75.
The net proceeds will be used for growth initiatives, working capital and general corporate purposes, it said.
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Each unit comprises one ordinary share and one ordinary share purchase warrant. Each warrant entitles the holder to purchase one share at an exercise price of $3.35 for a period of 48 months following the closing date of the offering, which is scheduled to be on or about November 29, 2022.
The company said it has agreed to grant the underwriters an over-allotment option to purchase up to an additional 15% of the units at the issue price, exercisable at any time on or prior to the date that is 30 days following the closing of the offering.
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