Zen Graphene Solutions Ltd. (TSXV: ZEN), Ontario, Canada, has announced the closing of the first tranche of its previously announced private placement of units (the “Offering”). The Company raised gross proceeds of $1,077,294.80 under the Offering, which will be used to fund ongoing work on the Albany Graphite Project (Ontario, Canada) including graphene research and scale up, COVID-19 initiatives and other graphene applications development and for general corporate purposes.
A second tranche is expected to close shortly in line with previous interest received and reported in the news release of June 17th 2020. The Board of directors wishes to thank all the long-term shareholders and new shareholders who participated in the Offering.
The Offering consisted of the issuance of 1,795,491 units at a price of $0.60 per Unit, for aggregate gross proceeds of $1,077,294.80. Each Unit consisted of one common share of the Company and one half of one non-transferable share purchase warrant. Each whole Warrant will entitle the holder thereof to acquire one additional Common Share at an exercise price of $0.80 per Warrant, exercisable for a period of twenty-four months from the closing of the Offering (the “Exercise Period”).
All Warrants issued in connection with the Offering are subject to an acceleration clause. If the Company’s share price trades at or above $1.00 per share for a period of ten (10) consecutive trading days during the Exercise Period, the Company may accelerate the expiry date of the Warrants to 30 calendar days from the date on which written notice is given by the Company to the holders of the Warrants.
The Common Shares and the Warrants issued in connection with the Offering will be subject to a hold period until October 27, 2020 in accordance with applicable securities laws.
About ZEN Graphene Solutions
ZEN Graphene Solutions is an emerging graphene technology company with a large source of graphite from the globally unique Albany deposit (Ontario, Canada), a rare, igneous-related, fluid-derived graphite deposit. The unique genesis of the Albany deposit has resulted in very fine-grained graphite crystallites, which yields an ideal graphite material for conversion to high-value Albany Pure™ Graphene products. These products include graphene, graphene oxide and graphene quantum dots for use in a wide variety of applications including graphene-enhanced composite materials, batteries, coatings and lubricants.
ZEN Graphene Solutions has a large facility with labs based in Guelph, Ontario to produce Albany Pure™ Graphene products. The Albany Graphite Deposit is located in northeastern Ontario near the community of Constance Lake First Nation and the town of Hearst, about 30 km north of the Trans-Canada Highway. Infrastructure including power lines and a natural gas pipeline are located nearby with a rail line 70 km away and a forestry access road 9 km to the south.