Tirupati Graphite, a specialist flake graphite company, has successfully raised £1.05 million through a private placement of 9.5 million new ordinary shares.
Acting as the sole broker and bookrunner, Optiva Securities facilitated the placement. The company is set to list the placing shares on the Financial Conduct Authority’s official list and the main market of the London Stock Exchange by January 22.
Additionally, Tirupati has accepted a subscription from certain directors and senior management members for 5.67 million ordinary shares at £0.025 each.
This subscription will be satisfied by offsetting amounts owed to these individuals for past fees or remuneration.
The issuance and admission of these subscription shares will be deferred until the company has sufficient headroom to do so without issuing a prospectus, expected around April 24.
The placing proceeds will primarily be used as working capital to optimize production at the company’s facilities in Madagascar.
The capitalization of outstanding dues to directors and senior management through the subscription will allow the full placing proceeds to address operational working capital needs.
Tirupati is in discussions with potential lenders to secure additional funding for enhancing production processes, aiming for an annual production goal of 36,000 tons.
Notably, no capital has been raised against the convertible debt instrument as of January 16, as the company focuses on expediting banking finance and non-dilutive capital sources.
The funds raised will support ongoing optimization efforts as Tirupati works towards increasing production to 1,500 tons per month in Madagascar and exploring market expansion opportunities.
Executive Chairperson Shishir Poddar commented on the placement, stating that it will bolster the company’s operations, allowing a focus on ramping up production and sales in Madagascar despite previous constraints on working capital.
