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EcoGraf raises $1.6 million to progress development of new Australian battery graphite business

The company has received strong support from existing shareholders and encouraging participation by new institutional investors.

EcoGraf Ltd - EcoGraf raises $1.6 million progressing development of new Australian battery graphite business
EcoGraf is becoming a major supplier of eco-friendly graphite to a rapid growing battery and electric vehicles sector

EcoGraf Ltd (ASX:EGR) has received firm commitments from sophisticated, professional and institutional investors to raise $1.6 million through a placement of 24.6 million shares at an issue price of 6.5 cents per share.

The placement was conducted without a prospectus with the shares being offered and subscribed for by investors where disclosure is not required.

Shares will be issued on May 28 and represent a 7% discount to the 5-day volume-weighted average price of EcoGraf’s shares prior to the placement.

Funds to develop graphite facility 

Funds will be applied towards the development of a state-of-the-art EcoGraf™ battery graphite facility in Kwinana, Western Australia.

Specifically, funds will assist to:

  • Finalise offtake arrangements with priority customers in Europe and Asia;
  • Prepare marketing and technical reports to support government funding processes;
  • Secure lender approvals for the proposed US$35 million debt financing;
  • Pre-development technical programs and submission of government development approvals; and
  • Complete engineering, procurement, construction and operations planning arrangements

Share purchase plan

EcoGraf will also provide eligible shareholders with the opportunity to participate in a share purchase plan (SPP) at the same price of 6.5 cents per share.

The company intends to raise up to $500,000 under the SPP, which will not be underwritten.

Each eligible shareholder will be entitled to apply for up to $30,000 worth of shares.

Quick facts: EcoGraf Ltd

Price: 0.076 AUD

ASX:EGR
Market: ASX
Market Cap: $24.27 m
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