Gratomic Announces Non-Brokered Private Placement of $20 Million

Rhea-AI Summary

Gratomic Inc. (OTCQX:CBULF) announced a non-brokered private placement offering of up to 14.3 million working capital units at $1.40 each, totaling up to $20.02 million. Each unit includes one common share and one-quarter of a warrant, exercisable at $1.45 for six months. Proceeds will fund the Aukam Project ($14M), Capim Grosso Property exploration ($5M), and general working capital ($2M). Insiders may buy up to 10% of the offering, exempt from certain approval requirements. This offering is pending TSXV approval and securities will have a hold period of four months and one day.

Positive

• Gross proceeds of up to $20.02 million from the private placement.
• Proceeds allocated to critical projects: $14 million for Aukam Project and $5 million for Capim Grosso Property.
• Insider subscription option enhances investor confidence.

Negative

• Potential dilution of existing shareholders due to the issuance of new shares.

NOT FOR DISSEMINATION, DISTRIBUTION, RELEASE, OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

TORONTO, ON / ACCESSWIRE / December 15, 2021 / Gratomic Inc. ("Gratomic", "GRAT" or the "Company") (TSXV:GRAT)(OTCQX:CBULF)(FSE:CB82) announces a non-brokered private placement offering consisting of up to 14,300,000 working capital units ("WC Units") priced at $1.40 per WC Units for gross proceeds of up to $20,020,000 (the "Offering").

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.

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 ($14 million), exploration for the Company's Capim Grosso Property ($5 million) and general working capital ($2 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.

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 focused on introducing an exceptional anode material to the global electric vehicle and energy storage supply chains. True to its roots as an exploration and mining company, Gratomic aims 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. Large quantities of its naturally high-quality vein graphite have been shipped for testing to confirm its viability as an anode material. Gratomic is confident that the results will provide a unique competitive advantage in its desired target markets.

The Company's recent collaboration agreement with Forge Nano has advanced the developments on its graphite finalization phase for the micronization, spheronization, and the patented ALD coating of its Aukam vein graphite for use in lithium-ion batteries. Forge Nano is a global leader in surface engineering and precision nano-coating technology, using Atomic Layer Deposition.

GRAT has two outstanding off-take purchase agreements with TODAQ and Phu Sumika with contract fulfillment slated to begin in 2022.  Gratomic plans to deliver mine-to-market traceability through its partnership with deeptech company TODAQ by providing documented tracking on all graphite generated at its flagship Aukam Graphite Project.

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.  

"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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FAQ

What is Gratomic Inc.'s recent private placement offering?

Gratomic Inc. announced a non-brokered private placement of up to 14.3 million working capital units at $1.40 each, for gross proceeds of up to $20.02 million.

How will Gratomic use the funds from the private placement?

The funds will be allocated with $14 million for operating capital for the Aukam Project, $5 million for exploration at the Capim Grosso Property, and $2 million for general working capital.

What is the exercise price for the warrants issued in the private placement?

The warrants are exercisable at a price of $1.45 for six months following the closing of the offering.

Is the private placement subject to TSX Venture Exchange approval?

Yes, the offering is subject to TSX Venture Exchange approval.