Gratomic Announces Extension of Closing of $27 Million Non-Brokered Private Placement

Rhea-AI Summary

Gratomic Inc. has fully subscribed its non-brokered private placement offering amounting to $27,020,000. This comprises 19,300,000 units at $1.40 each, with the final closing extended to February 8, 2022. The funds will primarily support the Aukam Project ($17 million), Capim Grosso Property ($6 million), and general working capital ($4 million). The offering is pending TSX Venture Exchange approval, with a four-month hold period on the issued securities. Insider participation is allowed up to 10% of the offering.

Positive

• Full subscription of the private placement offering of $27,020,000 indicates strong market support.
• Allocation of $17 million towards the Aukam Project is a positive investment in development.

Negative

• None.

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TORONTO, ON / ACCESSWIRE / January 21, 2022 / Gratomic Inc. ("Gratomic", "GRAT" or the "Company") (TSX-V:GRAT) (OTCQX:CBULF) (Frankfurt:CB82) announces that, further to its Press Release of December 15, 2021, the previously announced non-brokered private placement offering of $27,020,000 is fully-subscribed. The offering consists of 19,300,000 working capital units ("WC Units") priced at $1.40 per WC Unit for gross proceeds of $27,020,000 (the "Offering"). The final closing of the Offering will be extended until February 8, 2022.

Each WC Unit consists of one (1) common share and one quarter (0.25) of a common share purchase warrant. Each full warrant (a "WC Warrant") entitles the holder to purchase one (1) common share (a "WC Warrant Share") at a price of $1.45 per WC Warrant Share until the date which is six (6) months following the Closing of the Offering. The closing of the offering will be extended until February 8, 2022. It is anticipated that a first closing will be effected on January 26, 2022 with a final closing scheduled for February 8, 2022.

Eligible Finders may receive 5% of the value of proceeds of the sale of WC Units in cash. The Company has agreed to pay First Republic Capital Corporation ("First Republic") a corporate finance fee equal to 2% of the gross proceeds of the Offering as consideration for waiving its right of first refusal in respect of the Offering. First Republic will have the right to place up to $5,000,000 of the Offering with its clients and will receive an additional cash fee of 3% in respect of any WC Units placed by First Republic.

Proceeds from the Offering will be used for operating capital for the Company's Aukam Project ($17 million), exploration for the Company's Capim Grosso Property ($6 million) and general working capital ($4 million). The Offering is subject to TSX Venture Exchange approval. The securities issued will be subject to a four-month and one day hold period.

Arno Brand CEO & President commented, "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. We will maintain our commitment to transparency and thank all of Gratomic's stakeholders for their continued support."

Insiders of the Company may subscribe for up to 10% of the WC Units under 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 which will 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 focused on becoming a leading global graphite supplier and aims to secure a strong position in the EV battery supply chain. With the continued development of its flagship Aukam project and further exploration on the Company's Capim Grosso property, Gratomic sets itself apart by seeking out unique top-quality assets around the world. True to its roots, the Company will continue to explore graphite opportunities displaying potential for development.

Large quantities of high-quality vein graphite have been shipped for testing to confirm its viability as an anode material. Gratomic is confident that the test results will provide a unique competitive advantage in its desired target markets. The Company will continue to update the public on the status of these tests and will provide results as soon as they become available.

The Company has formed a collaboration agreement with Forge Nano. With its patented ALD coating, this cooperation with Forge Nano is a key element to support Gratomic's strategies towards the value-added phases of production of graphite for anode applications, namely micronization, spheronization and coating, making Gratomic graphite a preferred choice for use in lithium-ion batteries.

For more information: visit the website at www.gratomic.ca or contact:

Arno Brand at abrand@gratomic.ca or (416) 561- 4095

Subscribe at gratomic.ca/contact/ to be added to our email list.

For Marketing and Media information, please email: info@gratomic.ca

"Neither 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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https://www.accesswire.com/685013/Gratomic-Announces-Extension-of-Closing-of-27-Million-Non-Brokered-Private-Placement

FAQ

What is Gratomic's recent private placement offering amount?

Gratomic's recent private placement offering is fully subscribed at $27,020,000.

When is the final closing date for Gratomic's private placement offering?

The final closing date for Gratomic's private placement offering is extended to February 8, 2022.

How will the funds from Gratomic's offering be allocated?

The funds will be allocated to the Aukam Project ($17 million), Capim Grosso Property ($6 million), and general working capital ($4 million).

Is insider participation allowed in Gratomic's private placement offering?

Yes, insiders may subscribe for up to 10% of the WC Units under the offering.

What is the price per unit in Gratomic's private placement offering?

Each unit in Gratomic's private placement offering is priced at $1.40.