Graphene Manufacturing Group Announces Closing of $3.45M Overnight Marketed Offering, Including Exercise In Full of the Over-Allotment Option

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BRISBANE, Australia, Aug. 16, 2023 (GLOBE NEWSWIRE) -- Graphene Manufacturing Group Ltd. (TSX-V: GMG) (“GMG” or the “Company”) is pleased to announce that the Company has closed its previously announced overnight marketed public offering of units (the “Units”) of the Company, including exercise in full of the over-allotment option (the “Offering”). A total of 2,029,412 Units were sold at a price of C$1.70 per Unit for gross proceeds of approximately C$3.45 million. Each Unit is comprised of one ordinary share of the Company (each, an “Ordinary Share”) and one-half of one ordinary share purchase warrant (each whole ordinary share purchase warrant, a “Warrant”). Each Warrant shall entitle the holder to purchase one ordinary share of the Company (a “Warrant Share”) at an exercise price of C$2.20 per share at any time until August 16, 2027, subject to adjustment in certain events. The Offering was completed pursuant to an underwriting agreement dated August 10, 2023 among the Company and Raymond James Ltd., as lead underwriter and sole bookrunner, Eight Capital and H. C. Wainwright & Co. (collectively, the “Underwriters”).

The net proceeds of the Offering are expected to be used primarily to strengthen the Company's financial position and provide liquidity to finance ongoing operations, including, in particular, the Company’s expenses incurred, and expected to be incurred, in connection with the Company’s research and development objectives.

In connection with the Offering, the Company paid the Underwriters a cash commission equal to 6% of the gross proceeds of the Offering and issued to the Underwriters such number of compensation warrants as is equal to 6% of the number of Units sold pursuant to the Offering (the “Compensation Warrants”). Each Compensation Warrant is exercisable into a Unit at an exercise price of C$1.70 per Unit until August 16, 2026.

The Offering was completed pursuant to a prospectus supplement dated August 10, 2023 (the “Supplement”) to the Company’s amended and restated base shelf prospectus dated August 2, 2023 (the "Base Shelf Prospectus"). Copies of the Supplement and the Base Shelf Prospectus can be obtained on SEDAR + at www.sedarplus.ca.

The TSX Venture Exchange (“TSXV”) has conditionally approved the listing of the Ordinary Shares and Warrants issued pursuant to the Offering, including the Warrant Shares. The Warrants are expected to begin trading on the TSXV under the symbol "GMG.WT" on or about August 21, 2023. The Warrants are governed by the terms of a Warrant Indenture (the “Warrant Indenture”) dated August 16, 2023 between the Company and Computershare Trust Company of Canada, as warrant agent. A copy of the Warrant Indenture will be available under the Company’s profile at www.sedarplus.ca. For further details regarding the Warrants, please refer to the Warrant Indenture.