First Graphene seeks $6.2m

Graphite company First Graphene is planning to raise $6.2 million from a rights issue to expand its production facility in Henderson and increase marketing initiatives.

First Graphene, formerly known as MRL Corporation, says the proceeds will also go towards developing its PureGRAPH additive, which will be incorporated into a range of rubber and high-density polyethylene (HDPE) products.

The Nedlands-based company will issue one new share priced at 13 cents each for every 10 company shares, together with one free attaching option per subscribed share.

The offer is not underwritten.

Shares in First Graphene were down 12.9 per cent at 1:10pm AEST to 14 cents.

The company recently entered into an agreement with shoe manufacturer Steel Blue, which will exclusively source graphene and other graphite products from First Graphene while also placing a minimum order of two tonnes of PureGRAPH.

Steel Blue began testing the additive on prototype boots last year.

It plans to incorporate PureGRAPH into its existing and future boots products.