Focus Graphite Announces Non-Brokered Private Placements of Flow-Through and Non Flow-Through Units
November 13 2020 - 4:10PM
Focus Graphite Inc. (“Focus” or the "Company") (TSX-V:
FMS; OTCQX
: FCSMF; FSE
:
FKC) announced today that it plans to complete a
non-brokered private placement of up to 4,285,715 units (the
“
Units”) of the Company at a price of $0.035 per
Unit (the “
Offering Price”) for aggregate gross
proceeds to the Company of up to $150,000 (the
“
Offering”), and up to 10,000,000 units (the
“
Flow-Through Units”) of the Company at a price of
$0.05 per Flow-Through Unit (the “
Flow-Through Offering
Price”) for aggregate gross proceeds to the Company of up
to $500,000 (the “
Flow-Through
Offering” and when referenced together with the
Offering, the “
Offerings”).
Each Unit will consist of one common share (a
“Common Share”) in the capital of the Company and
one non-transferable common share purchase warrant (each whole
warrant, a “Warrant”) of the Company. Each Warrant
issued as part of the Unit will entitle the holder thereof to
acquire one Common Share at an exercise price per Common Share of
$0.055 for a period of 48 months from the closing of the Offering
(the “Closing Date”).
Each Flow-Through Unit will consist of one
Common Share issued on a flow-through basis (a
“Flow-Through Share”) and one Warrant. Each
Warrant issued as part of the Flow-Through Unit will entitle the
holder thereof to acquire one Common Share, which is not a
Flow-Through Share, at an exercise price per Common Share of $0.055
for a period of 24 months from the Closing Date.
The Company 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 units sold based on the
same terms and in accordance with the policies of the TSX Venture
Exchange.
The net proceeds of the Offering will be used
for existing operations and general working capital requirements,
any finders’ fee payable in connection with the Offering and
Flow-Through Offering, but will not be used to pay any management
fees or investor relations fees.
The net proceeds of the Flow-Through Offering
will be used to support the Company’s Tetepisca drilling
program.
The Offerings are expected to close in tranches,
with the first tranche to 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 Units and Flow-Through Units 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 Units and Flow-Through
Units, including all underlying securities thereof, will have a
hold period of four months and one day from the date of issue.
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 would be 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.
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.
Focus Graphite Investor
Contact:
Scott Anderson
Investor Relations
(858) 229-7063
sanderson@nextcap-ir.com
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