NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Focus Graphite Inc. (TSX VENTURE:FMS) ("Focus" or the "Company") announces the closing of the first tranche of a non-brokered private placement (the "Offering") for gross proceeds of $650,000. The Company has issued 13,000,000 units (the "Units") at a price of $0.05 per Unit. Each Unit is comprised of one (1) flow-through common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles its holder to purchase one (1) common share at a price of $0.055 per common share until December 11, 2020.
In connection with the closing of the first tranche of the Offering, the Company paid a cash finder's fee totaling $38,500 and 770,000 warrants entitling the finder to purchase one (1) common share at a price of $0.05 per common share until December 11, 2020.
The securities issued in connection with the closing of the first tranche of the Offering are subject to a four-month hold period expiring on April 12, 2019. The Offering is subject to the final approval of the TSX Venture Exchange.
The Company intends to raise up to a total of $4,000,000 as part of the Offering and issued up to 80,000,000 Units at $0.05 per Unit. The proceeds from the Offering will be used for flow-through eligible exploration expenses.
An insider of the Company participated in the first tranche of the Offering and subscribed for an aggregate of 2,000,000 Units representing an aggregate amount of approximately $100,000. Participation of insiders of the Company in the Offering constitutes a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time.
About Focus Graphite
Focus Graphite Inc. is an advanced exploration and mining company with an objective of producing graphite concentrate at its wholly-owned Lac Knife flake graphite deposit located 27 km south of Fermont, Quebec. In a second stage, to meet Quebec stakeholder interests of transformation within the province and to add shareholder value, Focus is evaluating the feasibility of producing value added graphite products including battery grade spherical graphite.
Focus Graphite is a technology-oriented graphite mining development company with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc.
For more information about Focus Graphite, please visit www.focusgraphite.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Focus Graphite Inc.
Mr. Gary Economo
Chief Executive Officer
+1-613-241-4040
geconomo@focusgraphite.com
www.focusgraphite.com
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