NanoXplore Inc. struck a deal with a syndicate of underwriters co-led by Paradigm Capital Inc. and GMP Securities LP to raise about C$8 million via a bought-deal financing, it said March 5.
The company will offer its units at C$1.65 cents apiece. Each unit will be comprised of 1 share and 0.5 of a share purchase warrant, with each whole warrant exercisable for an additional share at C$2.30 for a 24-month period.
The underwriters will have an overallotment option to purchase up to an additional 1,212,200 units at the issue price for additional gross proceeds of about C$2 million. The option is exercisable at any time up to 48 hours before the offer closes.
Two existing shareholders, Mason Graphite Inc. and Martinrea International Inc., have indicated their intention to participate in the offering.
NanoXplore intends to use the proceeds for acquisitions, development of a 10,000-tonne-per-annum graphene production plant and for general corporate and working capital purposes.
The financing, subject to an acceleration clause, is expected to close by March 27.
