Black Swan Graphene has announced a non-brokered private placement of units for gross aggregate proceeds of CAD$6,000,000 (around US$4,177,000).
The Company intends to use the net proceeds for the acquisition and installation of additional plant associated equipment to increase production capacity in Consett, United Kingdom; hiring of additional direct sales and operations staff; expanding distribution channels; and for general corporate purposes. The Company's Board of Directors considered the Consolidation necessary to attract new investment and also to align with the Company's growing reputation and provide greater credibility when potential customers inevitably assess its market presence and stability.
Simon Marcotte, President and Chief Executive Officer, commented: "We are on the brink of a transformative period in Black Swan's growth story. The extraordinary interest from high-caliber investors underscores the market's confidence in our vision. This financing will strengthen our balance sheet, enable us to scale up our operations, broaden our global reach, and capitalize on the immense potential of our graphene-enhanced solutions. The market potential for concrete applications, combined with our Graphene Enhanced Masterbatch ("GEM") strategy, has given us the confidence to scale up our operations and production capacity. We believe the GEM strategy is instrumental in helping us maximize the adoption and impact of our graphene-enhanced materials."
Following the successful execution of several commercial agreements, partnerships and ongoing discussions directly with potential clients, the Company plans to allocate the net proceeds from the Offering toward acquiring and installing additional equipment at the Consett, United Kingdom facility to significantly increase production capacity from approximately 30-40 tonnes annually to an impressive 140 tonnes per year. This expanded capacity will enable the Company to meet the expected rising market demand while maintaining the flexibility to continue customer-focused development programs that are fostering adoption of its products. The funds will also support the hiring of direct sales and operations staff to drive global sales efforts and cover general corporate purposes.
Black Swan continues to make significant strides in its commercialization efforts, including the expansion of its GEM strategy across diverse industries. With the expected rising demand and growing partnerships, the Company is on track to position itself as a global leader in graphene-enhanced materials.