September 24, 2021
September 24, 2021 – Graphite One Inc. (GPH: TSX-V; GPHOF: OTCQX) (“Graphite One” or the “Company”) is pleased to announce that it has closed the second and final tranche of the previously announced brokered private placement financing (“Tranche Two Financing”) press released on June 30, 2021 (press release “Graphite One Announces Up to CA$12 Million Private Placement”) and the extension of the Tranche Two Financing as press released on August 30, 2021 (“Graphite One Announces Update on Timing of Closing Second Tranche of CA$12 Million Brokered Private Placement”).
The Tranche Two Financing raised gross proceeds of CA$998,000. In this tranche, 998,000 units of the Company (each a “Unit”) were issued at an issue price of CA$1.00 per Unit with each Unit consisting of one common share in the capital of the Company (a “Common Share”) and one common share purchase warrant (each a “Warrant”), with each Warrant entitling the holder thereof to acquire, on payment of CA$1.50 to the Company, one common share of the Company, subject to adjustment in certain circumstances, until August 12, 2022.
The Tranche Two Financing was conducted pursuant to the terms of an agency agreement dated August 12, 2021 entered into between the Company and Canaccord Genuity Corp. (the “Agent”). The Company has paid the Agent a cash fee totaling CA$69,860 equal to 7% of the gross proceeds of the Tranche Two Financing and issued 69,860 compensation warrants equal to 7% of the number of Units sold under the Tranche Two Financing (each a “Compensation Warrant”). Each Compensation Warrant will be exercisable to purchase one Common Share at an exercise price of CA$1.00, subject to adjustment in certain circumstances, until August 12, 2022.
The Company intends to use the net proceeds from the Tranche Two Financing for exploration and development on the Company’s Graphite Creek Property and general working capital and corporate purposes. Completion of the Tranche Two Financing is subject to receipt of final applicable regulatory approvals including final approval of the TSX Venture Exchange. All securities issued in connection with the Tranche Two Financing will be subject to a four month hold period ended January 25, 2022.
This media release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.