Focus Graphite Inc. has established a secured revolving demand line of credit facility of up to C$2.0 million with Canadian Imperial Bank of Commerce. The credit line provides the company with working-capital flexibility to bridge the cash flow timing gap between paying eligible project expenditures and receiving previously secured non-dilutive federal funding.

Amounts drawn under the facility bear interest at CIBC's Prime Rate plus 2.00% per annum. The credit line is secured by a first security interest over the present and after-acquired personal property of Focus and is supported by an unlimited guarantee from the company's chairman. No common shares, warrants or other securities were issued in connection with the arrangement.

The facility supports work programs at Lac Knife, the company’s flagship graphite project in Quebec, alongside downstream graphite-processing initiatives. Focus has secured more than C$15 million in non-dilutive federal funding to advance these programs. This includes up to C$14,062,500 from Natural Resources Canada under the Global Partnerships Initiative to develop, pilot and demonstrate ultra-high-purity graphite production capabilities using electrothermal fluidized bed technology. In addition, the company holds up to C$1,378,700 under Natural Resources Canada's First and Last Mile Fund to fund engineering, environmental, permitting, Indigenous engagement and feasibility activities for planned road and electrical infrastructure serving the deposit.

“The scale of non-dilutive government funding Focus has secured creates an important opportunity to advance Lac Knife, related infrastructure and our downstream technology programs while preserving shareholder capital. Because these contribution programs generally require eligible expenditures to be incurred before reimbursement is received, this revolving facility gives us an efficient way to bridge that timing difference and maintain momentum across our funded work programs. Our intention is to use the Facility as a working-capital bridge, reduce borrowings as approved government contributions are received and recycle that availability into subsequent phases of work where appropriate. Adding conventional bank credit gives us greater financial flexibility without issuing equity or warrants and supports our broader objective of minimizing unnecessary shareholder dilution as we execute on these programs.”

— Dean Hanisch, Chief Executive Officer

As active work programs scale up, the credit line is intended to cover short-term expenditures before grant reimbursements arrive, allowing capital to be recycled as funds are recovered without the need to access equity markets.

Read the full announcement: Focus Graphite Establishes C$2.0 Million Revolving Credit Facility with CIBC to Support Government-Funded Work Programs and Working Capital