Graphano to lower warrant exercise price to 33 cents

Executive Summary

• Graphano Energy Ltd. intends to reprice 12,334,240 common share purchase warrants, reducing the exercise price from 52 cents to 33 cents per share, subject to TSX Venture Exchange acceptance.
• The company appointed Andrew Gainsbury as acting chief financial officer on an interim basis, replacing James Richardson who has stepped away for medical reasons.
• The warrant repricing is intended to better reflect current market conditions, with proceeds from exercise intended to provide additional working capital.

Key Details

• Warrant Repricing Details:
  • Quantity: 12,334,240 common share purchase warrants.
  • Original Exercise Price: 52 cents per share.
  • Proposed New Exercise Price: 33 cents per share.
  • Expiry Date: Remains unchanged (Aug. 27, 2026).
  • Origin of Warrants: Originally issued pursuant to private placements of subscription receipts that closed on Dec. 22, 2020, and April 19, 2021. These converted into common shares and warrants upon listing on the TSX-V on Aug. 21, 2021.
  • Purpose: To better reflect current market conditions; if exercised, proceeds will provide additional working capital.
  • Insider Holdings: Directors and officers hold approximately 2.27% of the warrants subject to the amendment.
  • Agent/Broker Compensation: None of the warrants were issued as compensation to agents, brokers, or finders.
  • Regulatory Status: Subject to acceptance by the TSX Venture Exchange.
• Management Change:
  • New Appointment: Andrew Gainsbury appointed as acting chief financial officer on an interim basis.
  • Previous Role: Mr. Gainsbury previously served as the company's controller.
  • Qualifications: CFA, CMA, MBA from McGill University; over 16 years of experience in financial management and consulting in Canada and Brazil. Former CFO of a Brazilian engineering firm and senior consultant at Deloitte Brazil.
  • Predecessor: James (Jay) Richardson, who temporarily stepped down for medical reasons but remains a director of the company.

Notable Quotes

• "The amendment to the warrant terms is intended to better reflect current market conditions."
• "If exercised, the warrants would provide additional working capital to the company."