TSX-V: GRAT
TORONTO, Dec. 2, 2019 /CNW/ - Gratomic Inc. ("GRAT" or
the "Company") (TSX-V: GRAT) (FRANKFURT:CB81, WKN:A143MR)
wishes to announce that, further to the Company's Press Releases
issued November 5, 2019 and
November 25, 2019, the Company will
be proceeding with the 5 to 1 consolidation (the
"Consolidation") of its outstanding capital within the next
five business days. The Company will provide further particulars of
the commencement of trading on a post-consolidated basis and the
new CUSIP number for the post-consolidated shares prior to the
Consolidation. The Company also intends to proceed with up to a
$2.5 million non-brokered private
placement of up to 44,500,000 post-Consolidation Working Capital
Units ("WC Units") (the "Post-Consolidation WC
Offering").
There are currently 170,576,702 common shares issued and
outstanding. If shareholders approve the Consolidation, there will
be 34,115,340 post-consolidated common shares issued and
outstanding after giving effect to the Consolidation and before
giving effect to the Post-Consolidation WC Offering.
Each WC Unit is priced at $0.05625
and consists of one (1) post-consolidated common share and one (1)
common share purchase warrant ("WC Warrant"). Each WC
Warrant entitles the holder to purchase one (1) post-consolidated
common share (a "WC Warrant Share") at a price of
$0.10 per WC Warrant Share until the
earlier of: (i) three (3) years following the Closing of the
Post-Consolidation WC Offering; and (ii) in the event that the
closing price of the Common Shares on the TSX Venture Exchange is
at least $0.30 for twenty (20)
consecutive trading days, and the 20th trading day (the "Final
Trading Day") is at least four (4) months from the Closing
Date, the date which is thirty (30) days from the Final Trading
Day.
Eligible Finders may receive 5% of the value of proceeds of the
sale of WC Units in cash and 5% of the number of WC Units
sold in the form of broker warrants. Each broker warrant (a
"Broker Warrant") issued in respect of the sale of WC Units
entitles the holder to acquire one (1) post-consolidated common
share of the Company at $0.05625 for
a period of three (3) years from the Closing of the
Post-Consolidation WC Offering.
The Company expects to close the first tranche of the
Post-Consolidation WC Offering within five (5) business days
following the completion of the Consolidation, or such other date
as is agreed between the Company and the subscribers. All
securities issued under the Post-Consolidation WC Offering are
subject to a statutory four month hold period.
Insiders of the Company may subscribe for up to 25% of the
Post-Consolidation WC Offering. The insider private placements are
exempt from the valuation and minority shareholder approval
requirements of Multilateral Instrument 61-101 ("MI 61-101")
by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)
(a) of MI 61-101 in that the fair market value of the consideration
for the securities of the Company which may be issued to the
insiders does not exceed 25% of its market capitalization.
About Gratomic Inc.
Gratomic is an advanced materials company focused on mine to
market commercialization of graphite products most notably high
value graphene based components for a range of mass market
products. We have a JV collaborating with Perpetuus Carbon
Technology, a leading European manufacturer of
graphenes, to use Aukam graphite to manufacture graphene products
for commercialization on an industrial scale. The Company is
listed on the TSX Venture Exchange under the symbol GRAT.
"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 STATEMENTS: This news release
contains forward-looking statements, which relate to future events
or future performance and reflect management's current expectations
and assumptions. Such forward-looking statements reflect
management's current beliefs and are based on assumptions made by
and information currently available to the Company. Investors are
cautioned that these forward-looking statements are neither
promises nor guarantees and are subject to risks and uncertainties
that may cause future results to differ materially from those
expected. These forward-looking statements are made as of the date
hereof and, except as required under applicable securities
legislation, the Company does not assume any obligation to update
or revise them to reflect new events or circumstances. All of the
forward-looking statements made in this press release are qualified
by these cautionary statements and by those made in our filings
with SEDAR in Canada (available
at www.sedar.com).
SOURCE Gratomic
