Hillcrest Provides an Update on Private Placement Offering

Executive Summary

• Hillcrest Energy Technologies Ltd. announces the anticipated closing of the second tranche of its unit offering in early January 2026, including a $3 million strategic investment from Pasqua First Nation.
• The cash component of the offering is increased to $4.4 million and the debt component reduced to $2.85 million, raising total expected proceeds to approximately $7.25 million (up from $7.20 million).
• Proceeds will be used for ZVS technology development, product marketing, investor relations, repayment of accounts payable, and general working capital.

Key Details

• Second Tranche Timing: Expected close in early January 2026.
• Strategic Investment: Pasqua First Nation contributing $3,000,000.
• Offering Structure (updated):
• Cash Offering: Up to $4,400,000 of units at $0.09 per unit (private placement).
• Debt Offering: Up to $2,850,000 of units on the same terms as the cash offering.
• Total Expected Proceeds: Approximately $7,250,000 (increase of $50,000 due to oversubscriptions).
• Regulatory Note: Closing will trigger CSE Policy 4 security‑holder approval requirements; the company will rely on the “financial difficulties” exemption to avoid obtaining formal holder approval.
• Audit Committee Findings: Determined the offering is in the best interests of the company, reasonable under the circumstances, and that obtaining holder approval is not feasible.
• Use of Proceeds:
• Further development of Hillcrest’s ZVS (Zero‑Voltage Switching) technology.
• Marketing of products to potential customers.
• Investor relations activities.
• Retirement of existing accounts payable.
• General working capital.
• Holding Period: All securities issued are subject to a statutory four‑month‑plus‑one‑day hold period per CSE policies and Canadian securities law.

Notable Quotes

(No direct quotes were provided in the release.)