- Ceylon Graphite (CYL) has closed the second tranche of its private placement, after raising C$1.86 million in gross proceeds
- In the second tranche, the company issued 21.3 million units at a price of 8.75 cents each
- In total, Ceylon Graphite raised an aggregate $4.5 million through the two tranches of the completed private placement
- 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 9.68 per cent and is currently trading for 17 cents per share
Ceylon Graphite (CYL) has closed the second tranche of its private placement, after raising around C$1.86 million in gross proceeds.
The company previously completed the first tranche of this placement last week, on October 23. In that tranche, Ceylon Graphite issued over 30 million units at 8.75 cents each, for initial proceeds of $2,639,312.
In the second tranche, the company issued 21,265,000 units, also at a price of 8.75 cents each. 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 for $0.15, at any time until October 28, 2023.
Combined, the two tranches of the private placement have produced aggregate proceeds of $4.5 million, through the issue of over 51 million units.
Ceylon Graphite’s Chairman and CEO, Bharat Parashar, said the company was very pleased with the overwhelming interest from investors for this offering.
“Strategic battery metals are in significant demand globally and our goal is to be the premier producer of high-quality graphite for the energy storage industry. The company has made significant progress over the past four years towards this goal.
“This financing will now allow us to aggressively grow our business through increased production, ramping up sales efforts for long-term contracts and the commissioning of a processing unit,” he said.
As Bharat described, the proceeds of the placement’s tranches will be used to advance Ceylon Graphite’s operations. 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 funds will also be used to advance the development of additional sites, and for general corporate purposes.
Ceylon Graphite (CYL) is up 9.68 per cent and is trading for $0.17 per share, as of 11:34am EDT.