Focus Graphite Establishes C$2.0 Million Revolving Credit Facility with CIBC to Support Government-Funded Work Programs and Working Capital Facility provides working-capital flexibility to bridge reimbursement timing under more than C$15 million of
Focus Graphite Establishes C$2.0 Million
Revolving Credit Facility with CIBC to Support
Government-Funded Work Programs and
Working Capital
Facility provides working-capital flexibility to bridge
reimbursement timing under more than C$15 million of
previously announced non-dilutive federal funding
Ottawa, Ontario--(Newsfile Corp. - September 14, 2026) -
Focus Graphite Inc. (TSXV: FMS)
(OTCQB: FCSMF) (FSE: FKC0)
("
Focus
" or the "
Company
"), a Canadian developer of high-grade
flake graphite deposits and advanced graphite materials for battery, defence and industrial applications,
is pleased to announce that it has established a secured revolving line of credit facility of up to C$2.0
million (the "
Facility
") with Canadian Imperial Bank of Commerce ("
CIBC
").
The Facility provides Focus with additional working-capital flexibility as the Company advances work
programs supported by previously announced non-dilutive government funding agreements. In particular,
the Facility is intended to help bridge the timing between Focus's payment of eligible project
expenditures, the subsequent submission and review of claims under applicable contribution
agreements, and the receipt of corresponding government contributions.
Focus has secured more than C$15 million in previously announced non-dilutive federal funding to
support development of its Lac Knife Graphite Project and downstream graphite-processing initiatives.
This includes up to approximately C$14.1 million in non-repayable funding from Natural Resources
Canada ("
NRCan
") under the Global Partnerships Initiative ("
GPI
"), announced December 8, 2025, and
up to C$1,378,700 in non-repayable funding under NRCan's First and Last Mile Fund ("
FLMF
"),
announced June 3, 2026.
The GPI funding supports Focus's program to advance electrothermal purification of Canadian natural
flake graphite and the development, piloting and demonstration of ultra-high-purity graphite production
capabilities. The FLMF funding supports engineering, environmental, permitting, Indigenous
engagement and feasibility activities associated with planned road and electrical infrastructure serving
the Company's Lac Knife Graphite Project in Quebec.
As these programs move further into active execution, Focus expects the scale and frequency of eligible
expenditures to increase. The Facility is intended to provide liquidity during the period between the
Company's payment of qualifying project costs and receipt of eligible government contributions, allowing
capital to be recycled as reimbursements are received while maintaining continuity across funded work
programs. All funding remains subject to the terms, eligible expenditure requirements and
reimbursement procedures of the applicable contribution agreements.
Importantly, no common shares, warrants or other securities of Focus were issued in connection with the
Facility. The Company believes the addition of conventional bank financing provides greater flexibility to
manage short-term working-capital requirements while reducing the need to access the equity markets
solely to bridge reimbursement timing.
Dean Hanisch, Chief Executive Officer of Focus Graphite, commented, "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."
CIBC Revolving Credit Facility
Under the Facility, Focus has access to a revolving demand line of credit of up to C$2.0 million. Amounts
drawn under the Facility bear interest at CIBC's Prime Rate plus 2.00% per annum. Principal amounts
borrowed and subsequently repaid may be re-borrowed, providing Focus with flexibility to manage
recurring working-capital requirements as its funded programs progress.
Amounts outstanding under the Facility are repayable on demand. The Facility is secured by a first
security interest over the present and after-acquired personal property of Focus Graphite Inc. and is
supported by an unlimited guarantee from the Chairman of Focus Graphite.
The Facility may be used for day-to-day cash flow requirements, including working capital associated
with the timing of expenditures and reimbursements under the Company's government-supported
programs, as well as for general corporate working-capital purposes.
While the Facility is intended to reduce the Company's reliance on equity financing for these short-term
requirements, it does not preclude Focus from accessing the equity markets or other sources of capital
in the future where the Company determines such financing is appropriate to advance its broader
development strategy.
About Focus Graphite Advanced Materials Inc.
Focus Graphite is building an integrated graphite platform to supply the industries shaping the future.
Through the development of world-class graphite resources, advanced processing technologies and
higher-value advanced materials, the Company is positioning itself to support battery, defence,
advanced manufacturing and other strategic industries across North America and allied markets.
The platform is anchored by the Company's two 100%-owned graphite assets in Quebec. Lac Knife is
one of North America's highest-grade feasibility-stage graphite deposits, while Lac Tetepisca is one of
the largest identified graphite resources globally. Together with strategic technology partnerships and
government-supported innovation initiatives, these assets provide the foundation for a secure, scalable
and increasingly integrated graphite supply chain.
For more information on Focus Graphite Inc., please visit
http://www.focusgraphite.com
LinkedIn:
https://www.linkedin.com/company/focus-graphite/
Facebook:
https://www.facebook.com/focusgraphite
X:
https://x.com/focusgraphite
Investors Contact:
Dean Hanisch
CEO, Focus Graphite Inc.
+1 (613) 612-6060
Jason Latkowcer
VP Corporate Development
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking information. These
statements relate to future events or future performance. The use of any of the words "could," "intend,"
"expect," "believe," "will," "projected," "estimated," and similar expressions, as well as statements
relating to matters that are not historical facts, are intended to identify forward-looking information and
are based on the Company's current beliefs or assumptions as to the outcome and timing of such
future events.
In particular, this press release contains forward-looking information regarding, among other things,
the Company's intended use of the C$2.0 million revolving credit facility with CIBC; the Company's
ability to draw, repay and re-borrow amounts under the Facility in accordance with its terms; the use of
the Facility to support working-capital requirements and to bridge the timing between the incurrence
and payment of eligible project expenditures and the submission, review and receipt of corresponding
government contributions; the anticipated timing, availability and receipt of reimbursements under
previously announced funding agreements with Natural Resources Canada, including the Global
Partnerships Initiative and First and Last Mile Fund; the Company's ability to satisfy applicable
eligibility, reporting, reimbursement and other requirements under those funding agreements; the
continued advancement and execution of work programs supported by such non-dilutive government
funding, including activities related to the Lac Knife Graphite Project, associated infrastructure and the
Company's downstream graphite purification initiatives; the Company's expectations regarding the
scale and timing of expenditures under those programs; the potential for the Facility to provide
additional financial and working-capital flexibility, maintain continuity across funded work programs
and reduce the Company's need to access the equity markets solely to bridge reimbursement timing;
the Company's ability to reduce borrowings as government contributions are received and to recycle
availability under the Facility into subsequent phases of work where appropriate; and the Company's
future capital requirements and ability to access equity financing, debt financing or other sources of
capital where the Company determines such financing is appropriate to advance its broader
development strategy.
Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors
that may cause actual results, performance, or achievements to differ materially from those expressed
or implied by such statements. These risks and uncertainties include, but are not limited to, risks
related to market conditions, regulatory approvals, changes in economic conditions, the ability to
raise sufficient funds on acceptable terms or at all, operational risks associated with mineral
exploration and development, and other risks detailed from time to time in the Company's public
disclosure documents available under its profile on SEDAR+.
The forward-looking information contained in this release is made as of the date hereof, and the
Company is not obligated to update or revise any forward-looking information, whether as a result of
new information, future events, or otherwise, except as required by applicable securities laws. Because
of the risks, uncertainties, and assumptions contained herein, investors should not place undue
reliance on forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services accepts responsibility for the adequacy or
accuracy of this release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/314141