VANCOUVER, BC, Jan. 14,
2023 /CNW/ - Graphite One Inc. (TSXV: GPH)
(OTCQX: GPHOF) ("Graphite One" or the "Company") has
received a request from OTC Markets Group Inc. ("OTC
Markets") to issue a statement about recent promotional
activity concerning its common shares (the "Common
Shares").
On January 12, 2023, OTC Markets
informed the Company that it became aware of certain promotional
activities concerning the Company and the Common Shares traded on
the OTCQX Marketplace, including the distribution of digital
marketing materials and promotional newsletter emails published by
Promethean Marketing Inc. ("Promethean") and its affiliates
discussing the Company, its business, and the graphite industry in
general. The marketing materials also contain summaries of
recent news releases issued by the Company. OTC Markets
provided samples of the promotional material for reference.
Promethean is a third-party digital marketing firm retained by
the Company to provide communications and digital media
services. The information contained in the marketing
materials are factual statements regarding the Company, its
business, and the graphite industry.
The Company provided Promethean with publicly available source
of information for its marketing materials and retained editorial
control over the wording in the materials, including reviewing the
materials for factual accuracy prior to their dissemination.
The Company does not believe the statements in the marketing
materials and newsletter emails were false or misleading. The
appointment of Promethean, the nature of the relationship between
Graphite One and Promethean as well as the compensation to be paid
to Promethean were publicly disclosed in a news release on
May 10, 2022, which can be found
under the Company's profile on SEDAR and on the Company's
website. As disclosed in the May 10,
2022 news release, to the best of our knowledge, Promethean
nor any of its principals own any common shares, directly or
indirectly, in the Company. The commencement of the digital
marketing campaigns began on October 1,
2022.
In the last 12 months, the Company has engaged Promethean and TD
Media LLC dba Life Water Media LLC to provide digital marketing
services including content creation, distribution, and market
awareness campaigns.
Since the start of the digital marketing campaigns there has
been no unusual or significant trading volume in the Common
Shares.
After an inquiry by management, certain directors, officers, and
a control person purchased a total of 905,000 Common Shares in the
Company from the exercise of warrants and stock options within the
past 90 days of which 20,000 Common Shares were sold.
On August 30, 2022, the Company
closed the first tranche of a non-brokered private placement of
8,762,071 units at a price of $1.15
per unit for gross proceeds of $10,076,382 and closed the final tranche on
November 21, 2022 of 560,916 units
for gross proceeds of $645,052.
The $1.15 per unit was a 7% discount
to the closing price on the August 8,
2022 announcement of the non-brokered private placement.
On September 19, 2022, the Company
announced the repricing to a shares for debt transaction ("Debt
Settlement Transaction") with Taiga Mining Company, Inc. to
settle an outstanding debt in an aggregate of US$6,775,230 owing pursuant to an unsecured loan
facility dated September 9, 2019, as
amended and extended. Pursuant to the revised terms of the
Debt Settlement Transaction, the Company issued 9,296,328 common
shares at a deemed price of $0.95 per
share in full settlement of the debt, which was a 17% discount to
the closing price on the August 23,
2022 announcement of the shares for debt settlement.
About Graphite One Inc.
GRAPHITE ONE INC. (TSX–V: GPH; OTCQX: GPHOF) continues to
develop its Graphite One Project (the "Project"), with the goal of
becoming an American producer of high-grade anode materials that is
integrated with a domestic graphite resource. The Project is
proposed as a vertically integrated enterprise to mine, process and
manufacture high grade anode materials primarily for the
lithium–ion electric vehicle battery market. As set forth in
the Company's 2022 Pre-Feasibility Study, potential graphite
mineralization mined from the Company's Graphite Creek Property is
expected to be processed into concentrate at a graphite processing
plant. The proposed processing plant would be located on the
Graphite Creek Property situated on the Seward Peninsula about 60
kilometers north of Nome, Alaska. Graphite anode materials
and other value–added graphite products would be manufactured from
the concentrate and other materials at the Company's proposed
advanced graphite materials manufacturing facility expected to be
located in Washington. The Company intends to make a
production decision on the Project upon the completion of a
Feasibility Study.
On Behalf of the Board of
Directors
"Anthony Huston" (signed)
For more information on Graphite One Inc., please visit the
Company's website, www.GraphiteOneInc.com
Neither the 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.
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SOURCE Graphite One Inc.