Graphex raises $1.13M in share placing to cover costs and ADS exit
What's the deal? Graphex GroupDealroom has a profile for this one. Try Dealroom →, a Hong Kong-listed advanced-materials company serving the electric-vehicle supply chain, has completed a placing of 188,260,000 new shares at US$0.01 each, raising net proceeds of about US$1.08M (roughly $1.13 million). The shares went to at least six independent investors and now make up 16.67% of the enlarged share capital.
What's the money for? The company plans to use the proceeds mainly for staff pay, termination fees tied to winding down its American Depository Shares (ADS) programme, and legal and professional costs. The remainder will cover administrative expenses.
Why now? The raise comes as Graphex works through a strained balance sheet. It reported a US$4.34M loss in the first half of 2026 and US$17.7M in net current liabilities, with revenue broadly flat year on year.
What could go wrong? The placing dilutes existing holders, cutting the public float from 81.22% to 67.68%, and the amount is modest against the company's obligations. Graphex says it is still discussing further capital raising, and the proposed disposal of its US business remains part of its reset.
What's the endgame? Graphex is positioned in new materials for EVs and related industrial uses. Its US ADS programme ended in July, and this latest raise reads as a liquidity measure rather than a growth-financing milestone.
The signal: Graphex has leaned on equity to stay afloat, including a US$14.5M rights issue in 2025. This smaller placing broadens its investor base and eases near-term pressure, but underscores how dependent the company remains on fresh equity to cover operating and compliance costs.
Read more: tipranks.com
Image credit: Generated with Gemini
