Graphene Manufacturing Group Ltd (TSX-V:GMG, OTCQX:GMGMF) said on Tuesday it has entered into a subscription agreement with a private investor to raise gross proceeds of approximately US$10 million through a private placement.
Under the agreement, the subscriber has agreed to purchase nearly 6.5 million ordinary shares of the company at a price of C$2.15 per share.
The company said it intends to use the net proceeds for scale-up of graphene production and liquid graphene production capacity, scale-up of battery cell production capacity, commercialization of liquid graphene products, working capital and general corporate purposes.
"We are very pleased to welcome this US$10 million investment which further validates our products and business model and allows for significant production expansion to allow for expected sales in the near term of liquid graphene products and progress our next generation graphene battery," said Craig Nicol, GMG's CEO.
The investment will GMG to continue to execute its global growth strategy, said Jack Perkowski, the company's chairman.
"Securing a significant capital commitment is a strong vote of confidence in our technology and our team," Perkowski said.
"North America remains a key market for GMG, and this additional investment positions us well to scale production and drive long-term adoption of our graphene-enhanced products across the region."
The private placement is set to close by September 23.
Canadian-listed shares of GMG added 6% on Tuesday morning.
