- Ceylon Graphite (CYL) has closed the first tranche of its private placement after raising C$2,639,312 in gross proceeds
- Through the tranche, the company issued 30,163,566 units at a price of 8.75 cents per unit
- Ceylon Graphite expects to close the offering’s second tranche sometime around October 28, 2020
- The proceeds will primarily help accelerate commercial production at the company’s K1 site and finish development at its M1 site
- Ceylon Graphite (CYL) is up 7.14 per cent, and is currently trading for $0.15 per share
Ceylon Graphite (CYL) has closed the first tranche of its private placement after raising C$2,639,312 in gross proceeds.
During the tranche, the company issued 30,163,566 of its units at a price of 8.75 cents per unit. Each unit contained one common share in Ceylon Graphite, and one common share purchase warrant.
Each warrant allows the holder to buy one more common share in the company at an exercise price of $0.15 each. The warrants can be exercised at any time up until October 22, 2023.
Ceylon Graphite’s Chairman and CEO, Bharat Parashar, said the company attracted interest from a new strategic and highly sophisticated investor group during the first tranche.
“We are producing and have booked our first sales, making Ceylon Graphite a unique story in the graphite mining and energy storage space globally.
“Most junior companies raise money on the hopes of reaching production someday. We are already there, and this new investment simply increases our market advantage,” he said.
The company expects to close the private placement’s second tranche sometime around October 28, 2020. This additional tranche will provide the balance of the offering, to produce the final aggregate total of proceeds.
Ceylon Graphite will use the proceeds of the placement’s tranches for a number of purposes. Primarily, the funds will help accelerate commercial production at the company’s K1 site, and finish development and obtain mining license approval at its M1 site.
Some proceeds will also be used to advance the development of additional sites, and for general corporate purposes.
Ceylon Graphite (CYL) is up 7.14 per cent, and trading for $0.15 per share, as of 11:49am EDT.