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Highlights

  • Falcon upsizes its non-brokered private placement to 10,874,832 units, raising C$6.5 million
  • Proceeds will support development projects in Morocco and Guinea
  • La Mancha Fund’s participation in the placement subject to shareholder approval

Falcon Energy Materials plc (TSX-V:FLCN) has announced the successful closing of its upsized non-brokered private placement, raising a total of C$6,524,900. The Company initially planned to raise C$6,000,000 by issuing 10,000,000 units at C$0.60 per unit but has increased the offering to 10,874,832 units due to strong investor demand.

Each unit consists of one ordinary share and one non-transferable share purchase warrant, which entitles the holder to purchase an additional share at C$0.75 per share for a period of 36 months from the closing date. The upsized placement highlights growing investor confidence and strong market interest in Falcon Energy's strategic direction.

The net proceeds from the private placement will be used to advance the company’s projects in Morocco and Guinea, two regions that are critical to Falcon’s growth. Additionally, funds will support general working capital requirements, helping to strengthen the Company’s financial position as it prepares for further development.

The participation of La Mancha Fund SCSp in the private placement has been finalized in escrow, subject to approval by Falcon's shareholders at the Company’s next annual general meeting (AGM), scheduled to take place on or before June 9, 2025. If shareholder approval is granted, La Mancha’s subscription funds will be released, and the associated units will be issued to them. If approval is not obtained, La Mancha’s subscription will be cancelled.

As part of the offering, all securities issued are subject to a statutory four-month hold period under Canadian securities law, which will expire on July 25, 2025. Notably, no commissions were paid in connection with the private placement.