Focus Graphite Inc. has agreed to clear its longstanding shareholder debt by converting the remaining balance into common shares, removing its last cash repayment obligation under the facility.

Under the conditional agreement, Chairman Jeff York will convert C$835,000 through his holding company JJJY Holdings Inc. into 1,670,000 common shares of Focus at a deemed price of C$0.50 per share. The conversion price represents an approximately 11% premium to the company’s C$0.45 closing share price on August 17, 2026, and remains subject to approval by the TSX Venture Exchange.

The financing relationship began in 2019 and 2020, when JJJY Holdings provided capital that pushed the balance due to approximately C$3.05 million by September 30, 2020. The company has progressively reduced that total through prior settlements and equity conversions, leaving the C$835,000 balance that is now set for elimination without requiring a cash payout.

“My decision to convert the remaining balance of my loan into equity reflects my continued confidence in Focus Graphite and the progress we are making across the business,” said Jeff York, Chairman of Focus Graphite. “With the loan now fully converted into equity, I am further aligning my interests with our shareholders while strengthening the Company's financial position. Focus has made significant progress across its projects, technology and strategic partnerships, supported by growing government investment, and I remain committed to supporting the Company as we move into the next stage of development.” — Jeff York, Chairman

The debt clearance preserves capital for the company’s development priorities as it advances its 100%-owned Quebec assets. The portfolio includes the Lac Knife project, characterized as one of North America's highest-grade feasibility-stage graphite deposits, and the Lac Tetepisca project, noted as one of the largest identified graphite resources globally.

Activity across the wider region continues to draw attention to the potential of local supply chains, highlighted when Metals Australia Ltd reported Pre-Feasibility Study results for its Lac Carheil graphite project within the surrounding district outlining an annual production of 101,241 tonnes of graphite concentrates over a 24-year mine life.

Read the full announcement: Focus Graphite Chairman Converts Final C$835,000 Loan to Equity at a Premium to Market