Focus Announces Increases in Financing to $5.2M

Rhea-AI Summary

Focus Graphite Inc. has announced an increase in its financing from $4 million to $5.2 million, planning to issue up to 57,777,778 Common Shares at $0.09 per share. The Offering will close in tranches, pending necessary approvals. It is aimed at accredited investors under applicable exemptions. Additionally, Finder's fees of 7% in cash and warrants may be paid as part of the financing. The upcoming plans include the objective of producing battery-grade spherical graphite at its Lac Knife deposit in Quebec.

Positive

• Increased financing from $4 million to $5.2 million, enhancing liquidity.
• Potential to produce value-added battery-grade spherical graphite, aligning with market demand.
• Offering aimed at accredited investors, indicating targeted capital raise.

Negative

• None.

KINGSTON, ON / ACCESSWIRE / December 20, 2021 / Focus Graphite Inc. (TSXV:FMS) (the "Company" or "Focus") announces that, further to its news release of December 14, 2021, it has increased the previously announced financing from $4,000,000 to $5,200,000 and will issue up to 57,777,778 Common Shares of the Company issued on a flow-through basis ("FT Shares") at a price (the "Issue Price") of $0.09 per FT Share (the "Offering").

The Offering is expected to close in tranches, with the first trancheto close as soon as possible subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The FT Shares will be sold on a private placement basis to accredited investors pursuant to the "accredited investor" exemption or other available and agreed upon exemptions from prospectus requirements. The FT Shares will have a hold period of four months and one day from the date of issue.

The Company also announced in its December 14, 2021 news release that it may pay finder's fees equal to 7% of the gross proceeds from a portion of the financing in cash, and 7% finders warrants equal to the number of FT Shares issued as part of the Offering (the "Finder Warrants") in accordance with the policies of the TSX Venture Exchange. Each Finder Warrant now entitles the finder to purchase one (1) non-flow-through common share at a price of $0.15 per common share for a period of 12 months from closing of the Offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale wouldbe unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Focus Graphite

Focus Graphite Inc. is an advanced exploration company with an objective of producing flake graphite concentrate at its wholly owned Lac Knife flake graphite deposit located 27 km south of Fermont, Québec. In a second stage, to meet Quebec stakeholder interests of transformation within the province and to add shareholder value. Focus is evaluating the feasibility of producing value added graphite products including battery-grade spherical graphite.

Focus Graphite is a technology-oriented graphite development company with a vision for building long- term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.

For more information about Focus Graphite, please visit www.focusgraphite.com.

Contact:

Kimberly Darlington, Communications, Focus Graphite
kdarlington@focusgraphite.com

Judith Mazvihwa-Maclean CFO, Focus Graphite
jmazvihwa@focusgraphite.com
(613) 581-4040

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

This news release may contain certain forward-looking information and statements, including without limitation, the closing of the Offerings, statements pertaining to the use of proceeds, and the Company's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Focus Graphite's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

SOURCE: Focus Graphite Inc.

View source version on accesswire.com:
https://www.accesswire.com/678772/Focus-Announces-Increases-in-Financing-to-52M

FAQ

What is the purpose of Focus Graphite's increased financing to $5.2 million?

Focus Graphite aims to enhance liquidity for producing value-added products like battery-grade spherical graphite.

How many Common Shares will Focus Graphite issue at $0.09?

Focus Graphite plans to issue up to 57,777,778 Common Shares at the price of $0.09 each.

When will the financing Offering for Focus Graphite close?

The Offering is expected to close in tranches, with the first tranche closing as soon as necessary approvals are received.

What are the Finder's fees associated with Focus Graphite's financing?

Focus Graphite may pay Finder's fees of 7% of gross proceeds in cash and 7% in Finder Warrants.

What is the significance of the TSX Venture Exchange approval for Focus Graphite's Offering?

Approval from the TSX Venture Exchange is required for the Offering to proceed legally and compliantly.