Focus Graphite Announces $3.5 Million Bought Deal LIFE Offering of Units

Executive Summary

• Focus Graphite Inc. entered into a bought‑deal financing with Research Capital Corporation as sole underwriter to sell 8,333,400 units at $0.42 per unit for gross proceeds of approximately $3.5 million.
• Each unit consists of one common share and one warrant to purchase an additional share at $0.60 exercisable for 30 months; the underwriter also receives a 7% cash commission and broker warrants equal to 7% of units sold.
• Net proceeds are earmarked for temporary working‑capital needs, pre‑reimbursement payments, technical and qualification costs related to Canada’s Global Partnership Initiative, and general corporate purposes.

Key Details

• Units Offered: 8,333,400 (each = 1 common share + 1 warrant).
• Offering Price: $0.42 per unit.
• Gross Proceeds: $3,500,028.
• Warrant Terms: Exercise price $0.60 per common share; exercisable for 30 months after closing.
• Underwriters’ Option: Up to an additional 15% of the base units may be issued at the same terms, exercisable up to 48 hours before closing.
• Closing Date: Expected week of December 8, 2025 (subject to regulatory approvals, including TSX Venture Exchange conditional approval).
• Commission & Broker Warrants: Underwriter receives a cash commission equal to 7% of gross proceeds and broker warrants equal to 7% of units sold; each broker warrant allows purchase of one unit at $0.60 for 30 months post‑closing.
• Use of Proceeds: Temporary working capital, payments required before reimbursement, technical and qualification materials for the Government of Canada’s Global Partnership Initiative, and general corporate purposes.
• Exemption: Offering made under the listed issuer financing exemption (NI 45‑106 Part 5A) and will be free‑trading immediately upon issuance.

Notable Quotes

• Dean Hanisch, CEO: “The successful completion of this financing provides us with the capital needed to advance our projects and support critical initiatives such as Canada’s Global Partnership Initiative.”