First Graphene (ASX:FGR) is raising $3.5 million through a share placement to fund the company’s growth objectives.
The company will issue 43.75 million shares issued at $0.08 per share, representing a 13.8% discount to the 15-day volume weighted average price and an 18.4% discount to the last trading price.
In conjunction with this placement, First Graphene will issue one option per every two shares subscribed, exercisable at $0.12 and to expire two years from issuance. The company has 21.88 million options on offer for eligible holders.
Foster Stockbroking and Evolution Capital are acting as joint lead managers for this placement, which is expected to settle on 18 November.
First Graphene will deploy funds towards increasing the commercial adoption of PureGRAPH, which CEO Michael Bell says investor confidence in the product is reflected in this placement.
“As our growing client base starts to launch new materials and products into the market, interest in how our graphene can improve performance of these materials is growing,” Bell says.
First Graphene shipped off its first order of PureGRAPH 10 Masterbatch to Indonesia last week, equaling 500kg of product to be used for the KRUSHERS work boot range, as reported by Mining.com.au.
The company expects to manufacture another two tonnes of PureGRAPH under its commercial partnership with Alasmas.
First Graphene is a developer and supplier of graphitic materials and product formulations focused on expanding into global markets including cement and concrete.
Write to Maddison Elliott at Mining.com.au
Images: First Graphene
