Graphite One announces closing of early warrant exercise incentive program

Graphite One has has closed its early warrant exercise incentive program (the “Warrant Incentive Program”) receiving aggregate gross proceeds of Cdn$5,130,873 from the exercise of 5,130,873 outstanding common share purchase warrants (the “Warrants”), which included Taiga’s exercise of 2,258,957 Warrants.  These Warrants were exercised between February 20, 2024 and March 21, 2024, which was subsequently extended for one additional week to March 28, 2024 (the “Warrant Exercise Period”) at a reduced exercise price of Cdn$1.00 per common share and due to expire on August 28, 2024 and November 21, 2024.

The exercise price on the remaining 6,824,804 Warrants that were not exercised during the Warrant Exercise Period revert back to the original terms as they existed prior to the Warrant Incentive Program. The Warrant Incentive Program was designed to encourage the exercise of outstanding Warrants issued as part of the Company’s private placements which closed August 28, 2022, November 21, 2022 and September 17, 2023.  In connection with the exercise of the Warrants under the Warrant Incentive Program, the Company issued an aggregate of 5,130,873 common share purchase warrants (the “Sweetener Warrants”) to such warrant holders who exercised under the Warrant Incentive Program.  Each Sweetener Warrant has an exercise price of Cdn$1.00 per common share and expires at the earlier of: (i) three (3) years from the date of issuance; and (ii) at the Company’s option, 30 days from the date of announcement to accelerate the expiry date, if for any ten (10) consecutive trading days the closing price of the Company’s common shares on the TSXV Venture Exchange (the “TSXV”) equals or exceeds Cdn$1.20.

The Sweetener Warrants and the common shares issuable on the exercise thereof are subject to a four-month and one day hold period from their date of issuance of the Sweetener Warrants. The use of proceeds from the exercise of Warrants will be used to support the feasibility study and for general working capital.