Graphite One Announces Repricing of Stock Options

Rhea-AI Summary

Graphite One announced the repricing of 1,269,379 stock options for its officers, increasing the exercise price from $1.00 to $1.08 per share. This change aligns with the market price on the grant date and qualifies for a tax deduction under Canadian law. The repricing is subject to TSX Venture Exchange approval.

Graphite One is developing a comprehensive U.S.-based graphite supply chain, anchored by the Graphite Creek deposit, the largest in the U.S. The project includes a manufacturing plant in Ohio for advanced graphite materials and battery anode materials, along with a recycling facility for graphite and other battery components, promoting a circular economy strategy.

Positive

• Repricing of stock options from $1.00 to $1.08 aligns with the market price, reflecting confidence in the company's valuation.
• Qualification for a tax deduction under paragraph 110(1)(d) of the Income Tax Act (Canada) may result in financial benefits.
• Graphite One's U.S.-based supply chain strategy could reduce dependency on imports.
• The Graphite Creek deposit is recognized as the largest in the U.S., positioning the company as a key player in the market.
• Inclusion of a recycling facility in Ohio promotes a non-linear circular economy, potentially enhancing sustainability.

Negative

• The repricing of stock options requires TSX Venture Exchange approval, introducing regulatory risk.
• An increase in the exercise price to $1.08 may be perceived negatively by some shareholders if they expected a lower price.
• The project development, including the manufacturing plant and recycling facility, involves significant investment and long-term execution risk.

VANCOUVER, BC, June 3, 2024 /PRNewswire/ - Graphite One Inc. (TSX-V: GPH) (OTCQX: GPHOF) (the "Company") announces that the Company's board of directors has approved the repricing (the "Repricing") of an aggregate of 1,269,379 outstanding stock options (the "Options") issued to certain officers of the Company pursuant to the Company's stock option plan. The Repricing is subject to the approval of the TSX Venture Exchange ("TSXV").

The exercise price on these Options is repriced from $1.00 to $1.08 per common share to reflect the market price on the date of grant and to qualify for a deduction under paragraph 110(1)(d) of the Income Tax Act (Canada). There were no amendments to the other terms of the Options.

Graphite One's Supply Chain Strategy

With the United States currently 100 percent import dependent for natural and synthetic graphite, Graphite One is developing a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek deposit, recognized by the US Geological Survey as the largest graphite deposit in the U.S. "and among the largest in the world." The Graphite One Project plan includes an advanced synthetic graphite material and battery anode material manufacturing plant located in Warren, Ohio. The plan also includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the Ohio site, the third link in Graphite One's non-linear circular economy strategy.

About Graphite One Inc.

GRAPHITE ONE INC. continues to develop its Graphite One Project (the "Project") to become an American producer of high-grade anode materials that is integrated with a domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process and manufacture anode active materials primarily for the lithium‐ion electric vehicle battery market.  As set forth in the Company's 2022 Pre-Feasibility Study, graphite mineralization mined from the Company's Graphite Creek Property, situated on the Seward Peninsula about 60 kilometers north of Nome, Alaska, would be processed into concentrate at an adjacent processing plant.  Natural and artificial graphite anode active materials and other value‐added graphite products would be manufactured from the concentrate and other materials at the Company's proposed advanced graphite materials manufacturing facility located in northeastern Ohio. The Company intends to make a production decision on the Project upon the completion of a Feasibility Study.

On Behalf of the Board of Directors

"Anthony Huston" (signed)

On Twitter @GraphiteOne

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.

All statements in this release, other than statements of historical facts, are forward-looking statements.  Generally, forward‐looking information can be identified by the use of forward‐looking terminology such as "proposes", "expects", "is expected", "scheduled", "estimates", "projects", "plans", "is planning", "intends", "assumes", "believes", "indicates", "to be" or variations of such words and phrases that state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" and includes, but not limited to, the Company's ability to obtain TSXV approval of the Repricing. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update publicly or revise any forward-looking information, except as required by applicable securities laws. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedarplus.ca.

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SOURCE Graphite One Inc.

FAQ

What is the new exercise price for Graphite One's repriced stock options?

The new exercise price for Graphite One's repriced stock options is $1.08 per common share.

How many stock options are being repriced by Graphite One?

Graphite One is repricing a total of 1,269,379 stock options.

Is the repricing of Graphite One's stock options subject to any approvals?

Yes, the repricing is subject to the approval of the TSX Venture Exchange.

What is Graphite One's supply chain strategy?

Graphite One is developing a U.S.-based supply chain for advanced graphite materials, anchored by the Graphite Creek deposit, including a manufacturing plant in Ohio and a recycling facility.

Where is Graphite One's manufacturing plant for synthetic graphite material located?

Graphite One's manufacturing plant for synthetic graphite material is located in Warren, Ohio.

What does the inclusion of the recycling facility in Graphite One's plan signify?

The inclusion of the recycling facility signifies Graphite One's commitment to promoting a circular economy by reclaiming graphite and other battery materials.

Why was the exercise price repriced to $1.08 per share?

The exercise price was repriced to $1.08 per share to reflect the market price on the grant date and qualify for a tax deduction under Canadian law.

What is the significance of the Graphite Creek deposit for Graphite One?

The Graphite Creek deposit is significant as it is recognized as the largest graphite deposit in the U.S., positioning Graphite One as a key market player.