Focus Graphite Closes Fourth Tranche of Financing with Alumina Partners

Rhea-AI Summary

Focus Graphite Inc. has closed its fourth tranche under an Equity Financing Facility with Alumina Partners, raising $100,000. This tranche includes 579,711 units priced at $0.1725 per share with attached warrants exercisable at $0.2875 per share. The facility aims to provide up to $12.0 million over 24 months for working capital. The funds will support the company's goal to produce flake graphite concentrate at its Lac Knife and Lac Tététpisca projects and evaluate specialty graphite products for stakeholder interests in Québec.

Positive

• Secured $100,000 from the fourth tranche of financing.
• Total potential funding of up to $12.0 million over the next 24 months.
• Strategic focus on producing flake graphite concentrate and evaluating specialty graphite products.

Negative

• None.

KINGSTON, ON / ACCESSWIRE / September 9, 2022 / Focus Graphite Inc. (TSXV:FMS) (the "Company" or "Focus Graphite") announced today it has closed a fourth tranche under the previously announced equity financing facility (the "Equity Financing Facility") with Alumina Partners (Ontario) Ltd. ("Alumina"), an affiliate of New York-based private equity firm Alumina Partners, LLC.

In the fourth tranche under the Equity Financing Facility, the Company completed a private placement for gross proceeds of $100,000 from Alumina, with Alumina receiving 579,711 units of the Company consisting of a common share priced at $0.1725 per share and warrants to purchase 289,855 common shares, exercisable at $0.2875 per share for 36 months.

The Equity Financing Facility will provide the Company with up to $12.0 million over a 24-month period for working capital and general corporate purposes. Under the Equity Financing Facility, the Company may, subject to certain conditions, restrictions and acceptance by Alumina, raise funds through private placements in tranches of up to $500,000. Each tranche shall be a private placement of units, to be comprised on one common share and one-half of a common share purchase warrant, which will be exercisable for 36 months. The units will be issued at a discount of 25% of the closing market price at the time of each tranche, and the warrants will be issued at a 25% premium over the closing market price at the time of each tranche.

There are no standby charges or other upfront fees associated with the Equity Financing Facility. Each tranche of units issued under the Equity Financing Facility will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month hold period.

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 and Lac Tétépisca flake graphite projects located in the Côte-Nord administrative region of Québec. In a second stage, to meet Québec stakeholder interests in developing second transformation industries within the province and to add shareholder value, Focus is evaluating the feasibility of producing value added specialty 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.

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 Information

This news release may contain certain forward-looking information and statements, including without limitation, the closing of any private placements, 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.

For more information, please contact:

Kimberly Darlington
Communications and Investor Relations
kdarlington@focusgraphite.com
514-771-3398

SOURCE: Focus Graphite Inc.

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