CoTec Holdings Corp. Files Third Quarter Financial Statements And MD&A

Executive Summary

• CoTec filed its unaudited interim condensed consolidated financial statements for Q3 2025 and provided MD&A highlighting a $2.9 M net loss but strong cash position ($5.8 M) after an oversubscribed $13.5 M financing round.
• Significant operational milestones were achieved on the HyProMag USA rare‑earth magnet recycling JV (design >25% complete, expansion studies, feedstock agreement, equipment purchases) and the Lac Jeannine iron tailings project (infill drilling completed, feasibility study to commence).
• New convertible loan facilities of $6.6 M were secured; prior convertible loans totaling $6.851 M were automatically converted into equity.

Key Details

• Financial Reporting: Filed unaudited interim condensed consolidated financial statements and MD&A for the three‑ and nine‑month periods ended September 30, 2025 (available on SEDAR+).
• Quarterly Financials: Net loss of approximately $2.9 M for Q3 2025; year‑to‑date loss of $8.1 M. G&A expenses were $1.13 M (quarter) and $2.97 M (YTD); losses driven mainly by non‑cash items, accounting adjustments and finance expense provisions.
• Cash Position: Ended quarter with $5.8 M in cash and cash equivalents, bolstered by financing activities.

Operational – HyProMag USA (U.S. rare‑earth magnet recycling JV)

• Detailed Design & Engineering (“DDE”) >25% complete; on schedule and within budget.
• Scope expanded from two to three HPMS vessels, increasing NdFeB co‑product output.
• Commissioned expansion studies for additional hubs in South Carolina and Nevada – potential tripling of platform scale.
• Engaged Worley for a “Long Loop” recycling concept study.
• Executed feedstock supply & pre‑processing site‑sharing agreement with Intelligent Lifecycle Solutions (ILS) covering SC and NV; e‑waste stockpiling commenced.
• Purchased three Inserma/PCB pre‑processing units for Texas, Nevada, and South Carolina – delivery expected before year‑end.
• Ongoing discussions with U.S. federal/state agencies and commercial lenders regarding project financing and incentives.

Operational – Lac Jeannine (Québec iron tailings project)

• Completed 2025 infill & expansion drill program on 27 Aug 2025; assay results anticipated Q1 2026.
• Acquired a commercial‑scale multi‑gravity separation unit from Salter for ultra‑fine iron recovery testing.
• Continued engagement with Government of Québec, local stakeholders and First Nations.

Corporate / Financing

• Completed $13.5 M Listed Issuer Financing Exemption (LIFE) private placement – 35% oversubscribed.
• Secured $6.6 M new convertible loan facilities from Kings Chapel and Epic Capital (no draws as of quarter‑end).
• Converted $6.851 M of prior Kings Chapel convertible loans into equity upon automatic conversion trigger.

Notable Quotes

“During the third quarter we delivered significant progress across our portfolio, accelerated our strategic initiatives, advanced our flagship projects toward key milestones and completed a very successful oversubscribed financing initiative.” – Julian Treger, CEO, CoTec Holdings Corp.

All forward‑looking statements are subject to risks and uncertainties; readers should consult the Company’s continuous disclosure documents for full details.