La Mancha Investments S. a r. l. to File Early Warning Report

The most recent news (February 10, 2026) confirms that La Mancha Investments S.à r.l., a cornerstone strategic investor, has disposed of 8,333,333 ordinary shares of Falcon Energy Materials PLC at a price of C$0.60 per share for total proceeds of C$5 million. This disposal reduces La Mancha’s ownership from 25.4% to 18.1%. This news follows the February 9, 2026, announcement of a C$25 million non-brokered private placement also priced at C$0.60 per unit.

The impact is Routine - Negative. While a major shareholder still retains an 18% stake, the optics of an anchor investor selling a significant portion of their position on the open market—simultaneously with a large capital raise—suggests a lack of conviction in the current valuation or a desire to de-risk.

• Contradictory Signals: Management is messaging "acceleration" through a C$25M raise, while the largest shareholder is exiting for "investment management purposes."
• Price Ceiling: The disposal price of C$0.60, matched with the private placement price, creates a significant "overhang" and psychological resistance level. The market now knows a major seller is active at this price point.
• Strategic Retreat: La Mancha’s reduction follows the May 2024 revocation of the Lola Graphite project exploitation permit by the Guinean government. This fundamentally changed the company from a vertically integrated miner to a standalone industrial processor, which carries a different risk-reward profile.

Falcon Energy Materials is shifting focus toward becoming an independent producer of Coated Spherical Purified Graphite (CSPG) in Morocco. - Flagship Project: Morocco Anode Plant. - Economics: US$86M Initial CapEx for 26,000 tpa CSPG. - Status: Moving from pilot plant (100kg/day) to full-scale engineering. - Note: The company originally planned to use feedstock from its Lola project in Guinea, but that permit was revoked in mid-2025, forcing a pivot to a standalone processing model.