First Graphene (ASX:FGR) has secured firm commitments to raise AU$3.5 million through a placement of about 43.8 million fully paid ordinary shares at AU$0.08 per share, representing a 13.8% discount to the company's 15-day volume-weighted average price, according to a Tuesday Australian bourse filing.

The company will issue one free attaching unlisted option for every two shares issued under the placement, exercisable at AU$0.12 each, expiring two years from the date of issue, the filing said.

The proceeds will be used for general operating expenses and to increase the commercial adoption of its product, PureGRAPH, the filing added.

The shares are expected to settle on Nov.18, the company said.

The company's shares fell past 13% in recent Tuesday trade.