Falcon Energy arranges $25-million private placement

Executive Summary

• Falcon Energy Materials PLC has arranged a non-brokered private placement to raise gross proceeds of C$25 million.
• The funds are designated to accelerate the development of the company's anode plant in Morocco and cover general working capital requirements.
• The transaction involves the issuance of units at 60 cents per unit, supported by existing major shareholders and new high-profile investors.

Key Details

• Gross Proceeds: C$25 million.
• Structure: Non-brokered private placement.
• Units Issued: Up to 41,666,667 units.
• Price Per Unit: 60 cents (CAD).
• Unit Composition: Each unit consists of one ordinary share and one non-transferable share purchase warrant.
• Warrant Terms:
  • Each warrant allows the purchase of one additional share.
  • Exercise Price: 75 cents per warrant share.
  • Duration: 36 months from the date of closing.
• Use of Proceeds: Continued development of the Morocco anode plant and general working capital.
• Commissions: No commissions payable.
• Regulatory Conditions: Subject to standard regulatory approvals, including TSX Venture Exchange approval.
• Hold Period: All securities subject to a statutory four-month hold period under Canadian securities laws.
• Insider Participation: Insiders may participate; specific extent not yet determined but will be disclosed per TSX-V policies.
• Strategic Context: Proceeds support the development of a 25,000-tonne-per-year CSPG (coated spheronized purified graphite) production facility in Morocco.

Notable Quotes

• "The private placement is supported by our largest shareholders, underscoring confidence in Falcon's strategy and long-term prospects," said Matthieu Bos, chief executive officer of Falcon. "We are also pleased to welcome several high-profile new shareholders with strong business relationships in Europe, across the Atlantic and globally. With multiple catalysts ahead, this support positions Falcon well to advance the development of our project in Morocco."