Graphite One announces shares for Debt Settlement.
Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) (“Graphite One” or the “Company”) announces that the Company has arranged a shares for debt transaction (the “Debt Settlement Transaction”) to settle outstanding debt in an aggregate of US$6,775,230, including US$1,819,230 of accrued interest, owing pursuant to an unsecured loan facility dated September 6, 2019, as amended and extended, between Taiga Mining Company, Inc. (“Taiga”) and the Company .
Anthony Huston, President and CEO of Graphite One, commented:
Graphite One is very appreciative for Taiga’s continued support as the Company continues to advance its Graphite One Project and execute on our vision to become an American producer of high-grade anode materials.
Pursuant to the terms of the Debt Settlement Transaction, the Company will issue 9,812,791 common shares (the “Settlement Shares”) at a deemed price of CA$0.90 per share to Taiga in full settlement of the debt.
The Settlement Shares will be subject to a statutory four months and one day hold period pursuant to applicable securities laws. The Debt Settlement Transaction is subject to final approval by the TSX Venture Exchange.
The Debt Settlement Transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transaction (“MI 61-101”) as Taiga is an insider of the Company.
The Company is relying on exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the Debt Settlement Transaction with Taiga does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.
The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the Debt Settlement Transaction, which the Company deems reasonable in the circumstances as the Company wishes to improve its financial position by reducing accrued liabilities as soon as possible.
As a result of this transaction, Taiga now holds 28,407,697 common shares and 6,509,232 warrants to purchase additional common shares of the Company. Additional information concerning the foregoing will be contained in the Early Warning Report to be filed by Taiga on SEDAR under the Company’s profile.
About Graphite One Inc.
GRAPHITE ONE INC. (GPH: TSX‐V; GPHOF: OTCQB) continues to develop its Graphite One Project (the “Project”), whereby the Company could potentially become an American producer of high-grade anode materials that is integrated with a domestic graphite resource.
The Project is proposed as a vertically integrated enterprise to mine, process and manufacture high grade anode materials primarily for the lithium‐ion electric vehicle battery market. As set forth in the Company’s preliminary economic assessment, potential graphite mineralization mined from the Company’s Graphite Creek Property, is expected to be processed into concentrate at a graphite processing plant.
The proposed processing plant would be located on the Graphite Creek Property situated on the Seward Peninsula about 60 kilometers north of Nome, Alaska.
Graphite anodes and other value‐added graphite products would be manufactured from the concentrate and other materials at the Company’s proposed advanced graphite materials manufacturing facility, the location of which is the subject of further study and analysis.
The Company intends to make a production decision on the Project once a feasibility study is completed.
READ the latest Batteries News shaping the battery market
Graphite One Announces Shares for Debt Settlement, VANCOUVER, BC, August 23, 2022
