Focus Graphite raises C$891,000 in private placement

Published 08/08/2025, 23:26
Focus Graphite raises C$891,000 in private placement

OTTAWA - Focus Graphite Advanced Materials Inc. (TSXV:FMS) (OTCQB:FCSMF) (FSE:FKC0), whose stock has surged over 70% in the past six months according to InvestingPro data, has closed a non-brokered private placement raising gross proceeds of C$891,000, the company announced Friday.

The offering, which received conditional approval from the TSX Venture Exchange, consisted of 7,425,000 units priced at C$0.12 per unit. Each unit includes one common share and one non-transferable common share purchase warrant, with each warrant allowing the holder to acquire one additional common share at C$0.22 for 24 months.

The securities issued will have a hold period of four months and one day until December 9, 2025.

Focus Graphite stated in a press release that proceeds from the financing will be used to maintain existing operations and for general working capital requirements, including funding the company’s strategic initiatives in battery technology and advanced materials development. This financing comes at a crucial time, as InvestingPro data shows the company’s current ratio at 0.1, indicating potential liquidity challenges.

In connection with the offering, the company paid C$42,480 in cash finder’s fees and issued 354,000 finder warrants. These warrants entitle holders to purchase one common share at C$0.22 per share until August 8, 2027.

Focus Graphite owns two graphite projects in Canada - Lac Knife, which the company describes as one of North America’s most advanced high-purity graphite deposits with a completed feasibility study, and Lac Tétépisca, which the company positions as a potential major graphite deposit in North America.

The company focuses on developing graphite resources for applications in battery technology, defense, and advanced materials industries. With a market capitalization of $11.46 million and trading near its 52-week high, InvestingPro analysis suggests the stock may be overvalued at current levels. Subscribers can access 8 additional ProTips and comprehensive financial metrics to make more informed investment decisions.

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