Gratomic Announces Extension of $6 million Non-Brokered Private Placement

Rhea-AI Summary

Gratomic Inc. (OTCQX: CBULF) has announced an extension of its non-brokered private placement offering of up to 20 million working capital units, priced at $0.30 each, aiming for gross proceeds of $6 million. The company has raised over $3 million so far and expects to close the balance by May 11, 2023, or upon selling the remaining units. Each unit comprises one common share and one warrant, allowing the purchase of additional shares at $0.45 each. CEO Arno Brand emphasized the financing's importance for the completion of critical components in their processing plant. The company's insider participation is capped at 25%, exempting them from certain regulations. Gratomic continues to strengthen its position in the electric vehicle battery supply chain while maintaining a focus on high-quality graphite assets.

Positive

• Raised over $3 million in the current private placement that strengthens their capital.
• CEO indicates progress towards completing a processing plant, critical to future operations.
• Insider participation shows confidence in the company's future.

Negative

• The offering extension may indicate challenges in securing remaining financing within the initially planned timeline.
• Only 15.25 million of the planned 20 million WC Units have been sold, which may raise concerns about demand.

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TORONTO, ON / ACCESSWIRE / April 12, 2023 / Gratomic Inc. ("Gratomic", "GRAT" or the "Company") (TSX-V:GRAT)(OTCQX:CBULF)(Frankfurt:CB82) announces that it will be extending the closing of its non-brokered private placement offering of up to 20,000,000 working capital units ("WC Units") at a price of $0.30 per WC Unit for gross proceeds of up to $6 million (the "Offering") for up to a further thirty (30) days. The Company has raised $3,050,980.50 to date. The balance of the financing will close on the earlier of the sale of the remaining 9.8 million WC Units and May 11, 2023.

Each WC Unit consists of one (1) Common Share and one (1) Common Share purchase warrant (a "WC Warrant"). Each WC Warrant entitles the holder to purchase one (1) Common Share (a "WC Warrant Share") at a price of $0.45 per WC Warrant Share until two (2) years form the closing of the Offering.

Arno Brand, President and CEO of Gratomic, stated: "The proceeds of the financing to date have gone a very long way in bringing critical components to the processing plant that are required to bring it to completion. Gratomic takes a very hands-on approach to make sure our cash at hand serves our shareholders in the most impactful way. Interest in the financing is accelerating and I am optimistic that this extension will give us the time we need to complete the Offering successfully. We thank shareholders for their patience as we do what is required to secure the Company's future".

Insiders of the Company may subscribe for up to 25% of the WC Units in the Offering. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in sections 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the insiders does not exceed 25% of its market capitalization.

The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Gratomic

Gratomic is a multinational company with projects in Namibia, Brazil, and Canada. The Company is committed to becoming a leading global graphite supplier and aims to establish a strong position in the electric car battery supply chain. With the ongoing development of its flagship Aukam project and further exploration on the Company's Capim Grosso Graphite Project, Gratomic is setting itself apart by seeking unique high-quality assets around the world. The Company remains true to its roots and will continue to explore graphite deposits with development potential. The Company ranked third among the top 10 preforming TSX Venture 50™ mining stocks of 2022.

Large quantities of high-grade graphite concentrate have been shipped for testing following early positive results to confirm its suitability as an anode material. Gratomic is confident that the test results will provide a unique competitive advantage in its intended target markets. The Company will keep the public informed on the status of these tests and will announce the results as soon as they become available.

On the January 25, 2023 Gratomic announced that it had entered into a LOI with Graphex Technologies to supply graphite through existing facilities and develop a downstream processing facility in the continental US.

The Company has entered into a collaboration agreement with Forge Nano. With its patented ALD coating, this cooperation with Forge Nano is a key element in supporting Gratomic's strategies towards the value-added phases of production of graphite for anode applications through integrating its advanced atomic layered deposition technology to the coating of anode Graphite powders post micronizing and spheronizing.

For more information: Visit www.gratomic.ca or contact:

Arno Brand at abrand@gratomic.ca or (416) 561- 4095
Sign up at gratomic.ca/contact/ to be added to our email list.
For marketing and media information, please email: info@gratomic.ca

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Forward Looking Statements:

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com)

SOURCE: Gratomic Inc.

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FAQ

What is Gratomic's recent financing announcement?

Gratomic announced an extension of its non-brokered private placement of up to 20 million working capital units, raising over $3 million so far.

What are the details of Gratomic's offering?

The offering consists of units priced at $0.30 each, with a total aim of $6 million, and includes warrants at $0.45.

How long is the extension for the private placement?

The extension allows for an additional thirty days to complete the offering.

When is the deadline for Gratomic's financing?

The financing will close on May 11, 2023, or upon selling the remaining units.

What role do insiders have in the private placement?

Insiders may subscribe for up to 25% of the working capital units in the offering.