Ceylon Graphite (CYL.V) is currently working on closing a placement raising C$3.5M by issuing 14 million units at a price of C$0.25 per unit. Each unit will consist of one common share and a full warrant allowing the warrant holders to purchase an additional share of Ceylon at a fixed price of C$0.30 for a two year period. The financing was announced when Ceylon was trading at just C$0.175 per share and as its share price has now dropped to C$0.115, we are looking forward to see a status update on this financing.

Ceylon played it smart and first chased potential interest for the placement before announcing it, and in excess of 70% of the total amount the company was eyeing to raise had already been committed to from the bat – although no details were provided on whether or not this was an irrevocable commitment. The funds will be used for additional development activities while Ceylon will probably want to conduct additional spheronization test work after the first batch of test results indicates ‘excellent results’.

Unfortunately (and very surprisingly) Ceylon Graphite’s website does not contain any of the press releases it has been publishing, so shareholders will have to keep track of the company progress by keeping an eye on SEDAR-filings.

Disclosure: The author has no position in Ceylon Graphite anymore.

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