Placement Discount Signals Urgency to Accelerate PureGRAPH Market Adoption
First Graphene Limited has raised A$3.5 million through a share placement to accelerate the commercial adoption of its PureGRAPH graphene products and support ongoing operations.
- Placement of 43.75 million shares at A$0.08 each with attaching options
- Funds aimed at expanding PureGRAPH product adoption and general expenses
- Placement shares issued under existing ASX Listing Rule 7.1 capacity
- Lead managers Foster Stockbroking and Evolution Capital involved with fees and options
- Company’s shares to total approximately 880 million post-placement
Capital Raise to Fuel Growth
First Graphene Limited (ASX, FGR) has announced a successful capital raising effort, securing firm commitments to raise A$3.5 million through a placement of new shares. The placement, priced at A$0.08 per share, includes attaching unlisted options exercisable at A$0.12, set to expire in two years. This infusion of capital is intended to support the company’s strategic growth initiatives and general operating expenses.
Strategic Focus on PureGRAPH Expansion
The funds raised will primarily be directed towards accelerating the commercial adoption of First Graphene’s PureGRAPH products. These graphene-based materials have been gaining traction across various industries, including cement, composites, coatings, and energy storage. The company sees growing interest from its expanding client base, which is launching new materials and products enhanced by PureGRAPH’s performance benefits.
Placement Details and Market Impact
The placement involves issuing approximately 43.75 million new fully paid ordinary shares along with 21.875 million attaching options. The placement price represents a discount of 13.8% to the 15-day volume-weighted average price and an 18.4% discount to the last traded price, a common practice to incentivize investor participation. Post-placement, First Graphene will have around 880 million shares on issue.
Investor Confidence and Leadership Commentary
Managing Director and CEO Michael Bell expressed gratitude to investors for their confidence, highlighting the company’s commitment to expanding PureGRAPH’s global commercial footprint. Bell emphasized the company’s view of the graphene market’s potential and the role of their products in improving material performance and sustainability outcomes.
Supporting Infrastructure and Market Position
First Graphene maintains a robust manufacturing platform in Henderson, Western Australia, with a strong research and development presence in the UK. The company’s scalable production capabilities and captive supply of high-purity raw materials position it well to meet increasing demand. The capital raise will help leverage these strengths to capitalize on emerging opportunities in high-growth sectors.
Bottom Line?
This capital raise sets the stage for First Graphene’s next phase of commercial expansion, with market watchers keen to see tangible uptake of PureGRAPH products.
Questions in the middle?
- How will First Graphene specifically allocate the raised funds across growth initiatives?
- What milestones or timelines are expected for accelerated commercial adoption of PureGRAPH?
- How might the dilution from the placement affect existing shareholders in the near term?
