Ceylon Graphite Announces CDN$2,000,000 Non-Brokered Financing

2018-04-17

Apr. 16, 2018 - Ceylon Graphite Corp. is pleased to announce that it intends to complete a non-brokered private placement offering of units, at a purchase price of CDN$1.00 per Unit for aggregate gross proceeds of CDN$2,000,000. Each Unit will be comprised of CDN$1.00 in principal amount of convertible debentures and two common share purchase warrants. Each Convertible Debenture shall be unsecured, bear interest at the rate of 6% per annum, calculated and payable three years from the date of closing. The principal amount of the Convertible Debentures will be convertible at the holder’s option into fully-paid common shares in the capital of the Company at any time prior to Maturity, at a conversion price of CDN$0.25 per share, provided however, such conversion shall occur in minimum tranches of CDN$50,000. Each Warrant shall entitle the holder to purchase one common share in the capital of the Company at a price of CDN$0.25 per share for a period of three years from the date of closing, subject to acceleration in the event that the volume weighted average trading price of the Company’s common shares on the TSXV (or such other exchange or quotation system) is greater than or equal to CDN$0.50 for a period of twenty consecutive days.

All of the securities issued in connection with the proposed Offering are subject to a hold period of four months and one day.

Jacob Securities Holdings Inc., a company controlled by Sasha Jacob, and current control person of the Company, has agreed to subscribe to up to CDN$1,000,000 worth of Units in the Offering.

Ceylon Graphite will use the net proceeds of the Offering to continue its current exploration program and for working capital purposes. The Offering is subject to certain conditions including normal regulatory approvals, including the approval of the TSX Venture Exchange. The Closing Date of the Offering is anticipated to occur on or about April 30, 2018.