Focus Graphite Inc. Closes $2,000,000 Private Placement
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Focus Graphite Inc. Closes $2,000,000 Private Placement

Tuesday, June 8, 2021 4:50 PM
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KINGSTON, ON / ACCESSWIRE / June 8, 2021 / Focus Graphite Inc. (TSXV:FMS) (the "Company" or "Focus Graphite") announced today it has closed its previously announced non-brokered private placement (the 'Offering') for total aggregate gross proceeds of $2,000,000. The closing of the Offering occurred in a final tranche of $177,200 (the "Final Tranche"). As part of the Final Tranche, the Company issued 1,476,666 flow-through shares (the "FT Shares") at a price of $0.12 per FT Share.

In connection with the closing of the first tranche of the Offering, the Company paid cash finder's fees totaling $700 and issued 5,833 non-transferable finder's warrants (the "Finders Warrants"). Each Finders Warrant entitles the holder to acquire one (1) non-flow-though common share of the Company at a price of $0.12 per common share until June 7, 2023.

The securities issued in connection with the Final Tranche are subject to a four-month hold period expiring October 8, 2021.

Two insiders of the Company participated in the Offering and subscribed for an aggregate of 768,333 FT Shares representing an aggregate amount of $92,200. Participation of insiders of the Company in the Offering constitutes a 'related party transaction' as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ('61-101'). The Offering is exempt from the formal valuation and minority shareholder approval requirements of 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders of the Company had not been confirmed at that time.

The Offering is subject to the final approval of the TSX Venture Exchange.

About Focus Graphite

Focus Graphite Inc. is an advanced exploration company with an objective of producing flake graphite concentrate at its wholly owned Lac Knife and Lac Tétépisca flake graphite projects located in the Côte-Nord administrative region of Québec. In a second stage, to meet Québec stakeholder interests in developing second transformation industries within the province and to add shareholder value, Focus is evaluating the feasibility of producing value added specialty graphite products including battery-grade spherical graphite.

Focus Graphite is a technology-oriented graphite development company with a vision for building long-term, sustainable shareholder value. Focus also holds a significant equity position in graphene applications developer Grafoid Inc. For more information about Focus Graphite, please visit www.focusgraphite.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This news release may contain certain forward-looking information and statements, including without limitation, the closing of the Offerings, statements pertaining to the use of proceeds, and the Company's ability to obtain necessary approvals from the TSX Venture Exchange. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Focus Graphite's disclosure documents on the SEDAR website at www.sedar.com. The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Focus Graphite Investor Contact:
Scott Anderson
Investor Relations
(858) 229-7063
[email protected]

Focus Graphite Inc.
Judith Mazvihwa-MacLean
CFO
(613) 581-4040
[email protected]

SOURCE: Focus Graphite Inc.

Focus Graphite Inc.
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