Focus Graphite arranges $3.5-million offering

Executive Summary

• Focus Graphite Inc. has entered into a bought deal agreement with Research Capital Corp. to raise $3.5 million in gross proceeds through the issuance of 8,333,400 units at $0.42 per unit.
• Each unit consists of one common share and one common share purchase warrant, with the warrants exercisable at $0.60 per share for 30 months.
• Net proceeds are designated for temporary working capital, pre-reimbursement payments, technical/qualification materials for the Canadian government's global partnership initiative, and general corporate purposes.

Key Details

• Transaction Structure: Bought deal offering of units.
• Underwriter: Research Capital Corp. (Sole underwriter and sole bookrunner).
• Units Issued: 8,333,400 units.
• Price Per Unit: $0.42 CAD.
• Gross Proceeds: $3,500,028.
• Unit Composition: Each unit comprises one common share and one common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.60 per common share.
  • Duration: 30 months following closing.
  • Entitlement: One warrant per unit, entitling holder to purchase one common share.
• Use of Proceeds: Temporary working capital float, payments required before reimbursement, technical and qualification materials associated with the Government of Canada's global partnership initiative, and general corporate purposes.
• Over-Allotment Option: The underwriter has an option to purchase up to an additional 15% of the total units (approx. 1,250,010 units) at the same price, exercisable up to 48 hours prior to closing.
• Underwriter Compensation:
  • Cash Commission: 7.0% of aggregate gross proceeds.
  • Broker Warrants: A number of warrants equal to 7.0% of the units sold.
  • Broker Warrant Terms: Exercise price of $0.60 per unit for 30 months following closing.
• Regulatory Basis: Listed issuer financing exemption under Part 5A of National Instrument 45-106, Prospectus Exemptions, in all Canadian provinces except Quebec, and qualifying jurisdictions including the United States. Units are immediately free trading.
• Expected Closing: On or about the week of Dec. 8, 2025, subject to regulatory approvals including conditional approval of the TSX Venture Exchange.

Notable Quotes

• No direct quotes from management were included in the provided text.