Graphene-focused NanoXplore Inc. plans to raise a total of C$30 million from two offerings, primarily to expand its existing graphene production plant, add new production lines and buy new equipment. Closing is anticipated around Jan. 11, 2019.
The company said Dec. 18 that it struck an agreement under which a syndicate of underwriters led by National Bank Financial Inc. will purchase 15,384,000 NanoXplore shares on a bought-deal basis at C$1.30 apiece for C$20 million in gross proceeds.
NanoXplore also granted the underwriters an option to buy a further 7,692,000 shares at the same price, exercisable within 30 days following closing, to raise another C$10 million.
In addition, the underwriters will acquire C$10 million of the company's convertible debentures due Dec. 31, 2023. The unsecured debentures carry an interest rate of 8% per annum, payable semiannually, and are convertible at C$1.84 per common share.
NanoXplore may redeem the debentures in cash at any time before maturity by paying a 10% premium on the capital amount.
The company also agreed to expand its working relationship with existing shareholder Martinrea International Inc. Under an amended deal, NanoXplore will provide graphene to Martinrea and assist in developing graphene-related products and technologies, while Martinrea will help the company develop its operations.
Martinrea also agreed to subscribe for about C$15 million of the bought-deal offering and is expected to hold approximately 16% of the company's share capital after closing.
Earlier in the year, NanoXplore raised C$10 million from a bought-deal offering to develop its graphene facility and for working capital, which included participation by Martinrea.