Focus Graphite Inc. (TSXV: FMS) (OTCQB: FCSMF) (FSE: FKC0) has established a secured revolving line of credit of up to C$2.0 million with Canadian Imperial Bank of Commerce, the company announced on September 14, 2026. The facility is designed to bridge the timing gap between the company's payment of eligible project expenditures and its receipt of reimbursements under previously announced non-dilutive federal funding agreements. Notably, no shares, warrants, or other securities were issued in connection with the arrangement, which the company says reduces near-term reliance on equity financing.

Key Points

  • Focus Graphite Inc. (TSXV: FMS) (OTCQB: FCSMF) (FSE: FKC0)
  • The company has established a C$2.0 million secured revolving demand credit facility with CIBC
  • Drawn amounts bear interest at CIBC's Prime Rate plus 2.00% per annum; the facility is secured by a first security interest over Focus Graphite Inc.'s present and after-acquired personal property and is supported by an unlimited guarantee from the company's Chairman
  • Investors may be watching how quickly government reimbursements flow through and whether the facility reduces the need for future equity issuances

How the CIBC Facility Supports Focus Graphite's Government-Funded Programs

Focus Graphite has secured more than C$15 million in non-dilutive federal funding, including up to approximately C$14.1 million from Natural Resources Canada under the Global Partnerships Initiative, announced December 8, 2025, and up to C$1,378,700 under NRCan's First and Last Mile Fund, announced June 3, 2026. Because contribution agreements generally require eligible expenditures to be incurred before reimbursement is received, the revolving facility is intended to provide liquidity during that interim period. The company states that as funded programs move further into active execution, the scale and frequency of eligible expenditures is expected to increase.

Lac Knife Graphite Project and Downstream Purification Initiatives

The Global Partnerships Initiative funding supports Focus Graphite's electrothermal purification program and the development, piloting, and demonstration of ultra-high-purity graphite production capabilities. The First and Last Mile Fund supports engineering, environmental, permitting, Indigenous engagement, and feasibility activities for planned road and electrical infrastructure serving the Lac Knife Graphite Project in Quebec. The company describes Lac Knife as one of North America's highest-grade feasibility-stage graphite deposits. The revolving facility is intended to maintain momentum across these concurrent funded work streams.

Non-Dilutive Structure and Shareholder Capital Preservation

Focus Graphite emphasised that the CIBC facility involves no issuance of common shares, warrants, or other equity securities. Chief Executive Officer Dean Hanisch stated in the release that the facility "gives us an efficient way to bridge that timing difference and maintain momentum across our funded work programs," and described the company's intention to reduce borrowings as approved government contributions are received. The company's disclosure notes that the facility does not preclude future equity or debt financing where the company determines such financing is appropriate to advance its broader development strategy.