Focus Graphite Closes Third Tranche of Equity Financing with Alumina Partners

Rhea-AI Summary

Focus Graphite has successfully completed a third tranche of its Equity Financing Facility with Alumina Partners, raising $200,000 through a private placement. This involves the issuance of 3,555,555 units consisting of common shares priced at $0.05625 each and warrants for 1,777,777 shares at $0.09375.

The facility allows for up to $12 million over 24 months for working capital. All securities are subject to a 4-month hold period and require TSX Venture Exchange acceptance.

Positive

• Raised $200,000 through third tranche of equity financing.
• Potential access to $12 million over 24 months for working capital.

Negative

• The financing involves share dilution through private placements.

KINGSTON, ON / ACCESSWIRE / February 14, 2022 / Focus Graphite Inc. (TSXV:FMS) (the "Company" or "Focus Graphite") announced today it has closed a third 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 third tranche under the Equity Financing Facility, the Company completed a private placement for gross proceeds of $200,000 from Alumina, with Alumina receiving 3,555,555 units of the Company consisting of a common share priced at $0.05625 per share and warrants to purchase 1,777,777 common shares, exercisable at $0.09375 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, may 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 exploration and development company that seeks to produce flake graphite concentrate at its wholly owned Lac Knife and Lac Tétépisca flake graphite projects located in the Côte-Nord administrative region of Québec. As part of its mission to build long-term, sustainable shareholder value, Focus is also 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 an equity position in graphene applications developer Grafoid Inc. Focus is committed to operating in a socially, environmentally and ethically responsible manner.

For more information about Focus Graphite and the Company's Lac Tétépisca and Lac Knife projects, please visit Focus's website at www.focusgraphite.com or contact:

Kimberly Darlington
Communications, Focus Graphite
kdarlington@focusgraphite.com

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

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 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.

SOURCE: Focus Graphite, Inc.

View source version on accesswire.com:
https://www.accesswire.com/688638/Focus-Graphite-Closes-Third-Tranche-of-Equity-Financing-with-Alumina-Partners

FAQ

What was the amount raised in the third tranche by Focus Graphite on February 14, 2022?

Focus Graphite raised $200,000 in the third tranche of its Equity Financing Facility.

What is the share price for Focus Graphite's common shares in the recent financing?

The common shares were priced at $0.05625 each in the recent financing.

What is the purpose of the funds raised by Focus Graphite?

The funds raised will be used for working capital and general corporate purposes.

What is the total financing amount available to Focus Graphite under the facility?

Focus Graphite may access up to $12 million over a 24-month period under the facility.

What are the terms for the warrants issued in the third tranche of financing?

The warrants are exercisable for 1,777,777 common shares at $0.09375 per share for 36 months.

Are there any fees associated with Focus Graphite's Equity Financing Facility?

There are no standby charges or other upfront fees associated with the Equity Financing Facility.