First Graphite enters 2017 with strengthened balance sheet following capital raising
First Graphite (ASX:FGR) resumed trading today after entering a trading halt on Tuesday, when it announced that it intended to conduct a capital raising.
The company raised $3.52 million at 11 cents per share, representing a discount of circa 20% to the last closing price of 13.8 cents prior to the company entering a trading halt.
Lead manager, Far East Capital, said the raising was well supported by institutional and high net worth individuals.
First Graphite will be using the funds to continue the development of its graphene technology strategies, including the recently announced BEST Battery project, and production from its own mines located in Sri Lanka which are currently being developed.
Commenting on the significance of the capital raising in terms of First Graphite’s outlook, Managing Director Craig McGuckin said, “It is pleasing that we can commence 2017 with a strong cash balance, underpinning what promises to be a significant year of progress on multiple fronts, from graphite and graphene production to the advancement of application for graphene”.
It would appear that investors have not been deterred by the issue of further shares and the discounted price of the capital raising with the company trading as high as 13.5 cents on Friday morning.
As indicated, this is broadly in line with its pre-capital raising price, suggesting the strengthening of the company’s balance sheet is viewed as a positive development.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.