First Graphene Limited (ASX:FGR) Raises $2.4M to Accelerate Growth
Placement Details
First Graphene Limited (ASX:FGR) secured A$2.4million through a Placement at A$0.05 per share, issuing 47,940,000 new fully paid ordinary shares. This price represents a 22.7% discount to the 15-day VWAP and a 21.9% discount to the last traded price of FGR shares. The Placement was managed by Foster Stockbroking Pty Limited and Ord Minnett Limited.
Use of Funds
The raised funds will be utilised to accelerate the Company’s commercial pipeline, capitalise on new revenue pathways, and for general working capital purposes. Significant progress has been made in the cement and concrete segment, including the commencement of the third phase of a graphene-enhanced cement trial with Breedon Group in the UK.
Investor Support
The Placement received strong support from institutional, sophisticated, and professional investors, indicating growing confidence in First Graphene’s near-term growth. The Company’s global distribution network has expanded into new and emerging markets, reinforcing its commercial pipeline and recent international recognition for patented processes involving PureGRAPH® and Kainos Technology.
Entitlement Issue
Following the Placement, an entitlement issue offer is proposed, allowing eligible shareholders to acquire 1 new Option for every 4 shares held at an issue price of A$0.005 per Option. Options will expire on 30 June 2027 and have an exercise price of A$0.085. The Company intends to apply for ASX listing of the new Options, subject to meeting quotation requirements.
Executive Comments
Managing Director and CEO Michael Bell stated, “I would like to thank existing shareholders who participated in the Placement, and welcome new institutional investors, during this exciting phase of growth for First Graphene. In recent months, we have made considerable progress on multiple commercial fronts, while strengthening our network of global distributors to meet growing demand for our PureGRAPH®. The funds raised during this Placement will help us accelerate our pipeline of commercial opportunities, capitalise on new revenue pathways and for general working capital purposes. I look forward to providing further updates as we progress these opportunities and achieve new growth milestones.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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