Falcon Energy Materials Announces Strategic Acquisition and Private Placement

Falcon Energy Materials plc, a provider of natural Coated Spheronized Purified Graphite, announced today that it is in advanced discussions to acquire a strategic minority interest in an existing anode producer in China. Concurrently, the company is launching a fully committed non-brokered private placement for C$30 million to fund its growth initiatives, including the Potential Acquisition, as well as its expansion plans in Morocco and internationally.

According to a statement from Matthieu Bos, Falcon's Chief Executive Officer, the private placement is "very well supported by our institutional investors, underscoring their confidence in Falcon's strategy and long-term prospects." Bos added, "The private placement and the potential acquisition further derisk the development of our anode plant in Morocco, positioning Falcon well to advance this key project with multiple catalysts ahead."

The company is in advanced discussions to acquire a minority interest in an anode material producer in China. This potential acquisition is seen as a significant step towards derisking the development of Falcon's anode material production facility in Morocco. No finders' fees will be payable in connection with the Potential Acquisition.

Falcon Energy Materials aims to become the premier provider of natural Coated Spheronized Purified Graphite, a critical component for energy storage solutions. The company is working on developing a state-of-the-art 25 ktpa CSPG production facility in Morocco, strategically partnered with leading Chinese technology firms and Tier One Moroccan partners. These partnerships are expected to provide advanced technological expertise, high-quality raw materials and chemicals, and a prime geographical location to support the company's global supply.

The private placement will involve the issuance of up to 30 million units at a price of C$1.00 per unit. Each unit will consist of one ordinary share and one-half of a non-transferable share purchase warrant, granting the holder the right to purchase one additional share at a price of C$1.29 per share for a period of 24 months from the date of closing. The funds raised will be used to finance the Potential Acquisition, the company's growth plan in Morocco and internationally, and general working capital requirements.

The private placement is subject to standard regulatory approvals, including the receipt of all necessary approvals from the TSX Venture Exchange. The company anticipates that insiders of Falcon will participate in the private placement, though the extent of their participation has not been determined at this time.

Matthieu Bos concluded, "The private placement and the potential acquisition are crucial steps in our strategic vision. They will help us advance our project in Morocco and support our global growth goals. We are excited about the opportunities ahead and are grateful for the support of our investors."

The proceeds from the private placement will be directed towards the potential acquisition and the company's growth initiatives in Morocco and internationally, ensuring the company remains well-positioned to meet the growing demand for sustainable energy solutions.