Graphite One Equity Plummets Following Capital Raise Announcement

The strategic push for a domestic U.S. graphite supply chain comes with significant cost. Graphite One Inc. is turning to its shareholders for fresh capital to advance its ambitious Alaska project, triggering a sharp selloff driven by fears of share dilution.

In a move that immediately repriced the stock, Graphite One set the price for its announced financing round at C$1.75 per unit. This figure represents a noticeable discount to the prior closing price of C$1.89. The market swiftly adjusted its valuation downward, resulting in a trading-day decline of 12% to 14%. At points during the session, the share price fluctuated between C$1.63 and C$1.66.

The company intends to issue over 17 million new units, aiming for gross proceeds of approximately C$30 million. Tuesday's elevated trading volume highlights the substantial impact of this revaluation by market participants.

Should investors sell immediately? Or is it worth buying Graphite One?

Financing Structure and Projected Use of Funds

A feature of the financing package offers a potential long-term offset for current shareholders. Each unit issued consists of one common share and one warrant. These warrants grant investors the right to purchase an additional share at C$2.25 at any point within the next 36 months.

With this exercise price set well above the capital raise price, participating investors are effectively betting on a substantial share price recovery over the three-year period. The primary destination for the newly raised capital is the planned Anode Active Material (AAM) facility. Funds are earmarked for design, engineering, and initial equipment purchases for this plant, a project considered a critical component of the U.S. critical minerals strategy.

The transaction is expected to formally close on or about February 18, 2026, subject to standard regulatory approvals. Until that date, the C$1.75 issuance price is likely to serve as a key reference level for the stock's trading range.