EcoGraf Ltd (ASX:EGR) has received firm commitments from sophisticated, professional and institutional investors to raise $1.6 million through a placement of 24.6 million shares at an issue price of 6.5 cents per share.
The placement was conducted without a prospectus with the shares being offered and subscribed for by investors where disclosure is not required.
Shares will be issued on May 28 and represent a 7% discount to the 5-day volume-weighted average price of EcoGraf’s shares prior to the placement.
Funds to develop graphite facility
Funds will be applied towards the development of a state-of-the-art EcoGraf™ battery graphite facility in Kwinana, Western Australia.
Specifically, funds will assist to:
- Finalise offtake arrangements with priority customers in Europe and Asia;
- Prepare marketing and technical reports to support government funding processes;
- Secure lender approvals for the proposed US$35 million debt financing;
- Pre-development technical programs and submission of government development approvals; and
- Complete engineering, procurement, construction and operations planning arrangements
Share purchase plan
EcoGraf will also provide eligible shareholders with the opportunity to participate in a share purchase plan (SPP) at the same price of 6.5 cents per share.
The company intends to raise up to $500,000 under the SPP, which will not be underwritten.
Each eligible shareholder will be entitled to apply for up to $30,000 worth of shares.