HPQ Silicon Closed over $1.0 Million Non-Brokered Private Placement

Executive Summary

• HPQ Silicon Inc. closed a non‑brokered private placement of 6,170,442 common shares at $0.1625 per share, generating gross proceeds of $1,002,696.83.
• The financing includes issuance of 333,303 warrants to CI Investment Services Inc., each exercisable at $0.18 for a 48‑month term.
• Net proceeds will be used to advance commercialization of the company’s three core technology pillars: Fumed Silica Reactor (FSR), HPQ ENDURA+™ battery cells, and METAGENE™ green hydrogen platform.

Key Details

• Placement Size & Pricing: 6,170,442 common shares @ $0.1625 per share → $1,002,696.83 gross proceeds.
• Statutory Hold Period: All securities subject to a four‑month‑and‑one‑day hold period from the closing date.
• Warrant Issuance: 333,303 warrants issued to CI Investment Services Inc.; each warrant allows purchase of one common share at an exercise price of $0.18 for 48 months, also subject to the same hold period.
• Use of Proceeds:
• Fumed Silica Reactor (FSR): Scale‑up and revenue generation activities.
• HPQ ENDURA+™: Commercialization of silicon‑based anode material program supported by NRCan.
• METAGENE™: Continued development and commercialization of autonomous green hydrogen production platform.
• Management Participation:
• Bernard Tourillon (Chairman, President, CEO & Director) subscribed for 615,384 common shares ($99,999.90).
• Post‑placement, Tourillon beneficially owns/controls 22,796,794 common shares (~5.29% of outstanding shares).
• Related‑Party Transaction: Qualified as a related‑party transaction under MI 61‑101 and TSX Venture Exchange Policy 5.9; exempt from formal valuation/minority shareholder approval because insider participation < 25% of market cap.
• Board Approval: The Board approved the private placement, including the insider participation.
• Closing Conditions: Placement remains subject to final acceptance by the TSX Venture Exchange.

Notable Quotes

“My $100,000 investment reflects my conviction in the Company’s ability to deliver on its near‑term execution priorities and my continued confidence in HPQ’s strategy and long‑term value creation,” – Bernard Tourillon, Chairman, President & CEO.

Materiality Assessment: Material – Positive (the financing provides over $1 M of capital to fund key commercialization initiatives and includes a notable insider investment).