Focus chairman converts $200,000 loan into shares

Executive Summary

• Chairman Jeff York converted a C$200,000 private loan into 571,428 shares at C$0.35 per share, strengthening Focus Graphite’s balance sheet.
• The conversion follows a prior sale of 488,000 shares to comply with TSX‑Venture ownership limits, resulting in a net increase in the chairman’s equity position.
• The company plans additional loan conversions over time to further reduce debt while preserving financial flexibility for upcoming project milestones at Lac Knife and Lac Tetepisca.

Key Details

• Conversion amount: C$200,000 → 571,428 shares @ C$0.35 per share.
• Prior private financing by chairman (via JJJY Holdings Inc.): C$1,535,000 total.
• Compliance sale: 488,000 shares sold for C$161,831.20 to stay below the 20 % ownership cap.
• Net effect: Chairman’s overall equity position increased despite the compliance sale.
• Future plan: Ongoing, controlled conversions of remaining loan balance to equity; any required share sales will be limited and timed to minimize price impact.
• Strategic rationale: Reduce debt, improve balance sheet, enhance attractiveness for future financing, and support advancement of Lac Knife and Lac Tetepisca projects toward production.

Notable Quotes

“This step is about supporting Focus Graphite for the long term,” said Jeff York. “By reducing debt and increasing equity, I'm reinforcing my confidence in the company's direction under new leadership.”