TORONTO, Aug. 10, 2018 (GLOBE NEWSWIRE) -- Gratomic Inc. (“GRAT” or the “Company”) (TSX-V: GRAT) (FRANKFURT: CB81 ) (WKN:A143MR) is pleased to announce that it has closed its over-subscribed non-brokered private placement announced on July 31, 2018 and raised $2,342,500 (the “ Offering ”) through the issuance of 23,425,000 working capital units (the “ WC Unit ”).

Arno Brand, Co-CEO of the Company, said “we are grateful to our shareholders for their continued support of the Company. Part of the proceeds from the Offering will be used to expand the Aukam Processing facility’s capacity from 600 tonnes per annum to 10,000 tonnes per annum and to expand its mining fleet.”

Each WC Unit is priced at $0.10 and consists of one (1) common share and one (1) common share purchase warrant (“ WC Warrant ”).  Each WC Warrant entitles the holder to purchase one (1) common share (a “ WC Warrant Share ”) at a price of $0.20 per WC Warrant Share until the earlier of: (i) August 10, 2021 (the “ Closing Date ”); and (ii) in the event that the closing price of the Common Shares on the TSX Venture Exchange is at least $0.30 for ten (10) consecutive trading days, and the 10th 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.

The Company paid eligible finders cash compensation of $50,650 and issued 474,000 Broker Warrants as selling commissions.  Each broker warrant (a “ Broker Warrant ”) issued in respect of the sale of WC Units entitles the holder to acquire one (1) common share of the Company at $0.10 for a period of three (3) years from the Closing Date. The Company paid First Republic Capital Corporation (“ First Republic ”) a corporate finance fee of $46,850 and issued to First Republic 468,500 corporate finance Broker Warrants along with its pro rata share of selling commissions.

All securities issued pursuant to the Offering are subject to a four month hold period expiring on December 11, 2018.

Insiders of the Company and their affiliates subscribed for $576,500 of the 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 issued to the insiders did not exceed 25% of its market capitalization.

About Gratomic Inc.

Gratomic Inc. 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.

For more information: visit the website at www.gratomic.ca or contact: Arno Brand, Co-CEO +1 416-561-4095 abrand@gratomic.ca

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).