First Graphite enters 2017 with strengthened balance sheet following capital raising


Published 27-JAN-2017 14:33 P.M.


1 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

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.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (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 and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.


Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free