Graphite Microcap Soars on All-Cash Buyout at 71% Premium

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Tuesday, July 28, 2026

The race to secure critical minerals for electric vehicles, energy storage, and advanced manufacturing continues to reshape the mining industry. As governments and manufacturers push to establish domestic battery supply chains, companies with strategic graphite assets have become increasingly attractive acquisition targets for larger players looking to build vertically integrated operations from mine to finished battery materials.

Shares of Lomiko Metals Inc. (TSX-V: LMR) (OTCPK: LMRMF) are soaring Tuesday after the company announced it has entered into a definitive arrangement agreement to be acquired by private Canadian company Global Battery Materials Corp. in an all-cash transaction valued at approximately C$11 million on a fully diluted basis. The proposed acquisition values Lomiko shares at C$0.13 per share, representing a 71% premium to the company's 20-day volume weighted average trading price through July 27.

Global Battery Materials is building a vertically integrated North American battery supply chain spanning natural graphite production through active anode materials. The company already operates anode processing technology validated at a pilot plant in South Korea while producing purified graphite concentrate samples from its GBM Graphite Lab in Mont Laurier, Québec. The acquisition would add Lomiko's graphite assets as a long-term strategic source of feedstock for the company's growing battery materials platform.

The transaction also includes a senior secured bridge loan facility under which Global Battery Materials has agreed to provide Lomiko with up to C$800,000, or C$1.2 million under certain circumstances, to support working capital requirements while the acquisition moves toward closing. The loan bears interest at 8% annually, matures no later than eighteen months after the initial advance, and is secured by a general security agreement covering substantially all of Lomiko's present and after-acquired personal property along with certain liens over its Québec assets.

Lomiko's Board of Directors unanimously approved the agreement, with interested directors abstaining, following the recommendation of a special committee of independent directors and receipt of an independent fairness opinion from Evans & Evans, Inc. In addition, securityholders representing approximately 18.2% of the company's outstanding shares, including all directors and executive officers, have already entered into voting support agreements backing the transaction.

If approved, Lomiko's flagship La Loutre Graphite Project, along with the Yellow Fox Property and its broader graphite exploration portfolio, will become part of Global Battery Materials' integrated anode materials platform. A special meeting of securityholders is expected in September, and the companies expect the transaction to close during the fourth quarter of 2026, subject to shareholder, court, regulatory, and other customary approvals. Following completion, Lomiko's shares are expected to be delisted from the TSX Venture Exchange.

Traders should note that the stock is changing hands below the offer price. At current levels, LMR sits roughly 8% under the C$0.13 consideration, a discount that reflects both the wait until a fourth quarter close and the approvals still outstanding.

Shares of LMR are up 60.0% to C$0.12 in Tuesday morning trading, while U.S.-listed LMRMF is ahead 45.6% to $0.0833.

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