Hillcrest sets out plans for 2026 commercialization

Executive Summary

• Hillcrest Energy Technologies provided a strategic update on its 2026 commercialization plans, highlighting the completion of a private placement and a new collaboration with Pasqua First Nation and Apeiron Resources to commercialize its Zero-Voltage Switching (ZVS) technology in Canada.
• The company closed the final tranche of a private placement, raising approximately $4.4 million in gross proceeds and settling $2.8 million in debt, strengthening its balance sheet for development and working capital.
• Key product milestones include the expected readiness of the ZVS PCS1000 (200kW, 1,000V power conversion system) for customer demonstrations in Q2 2026, targeting AI data centers and energy storage markets.

Key Details

• Financing Details:
  • Closed final tranche of private placement offering.
  • Total gross proceeds: Approximately $4.4 million.
  • Debt settlement: Approximately $2.8 million in debt retired.
  • Use of proceeds: Further development of ZVS technology, marketing, investor relations, retirement of accounts payable, and general working capital.
• Strategic Collaboration:
  • Partnered with Pasqua First Nation (PFN) and Apeiron Resources Ltd. to establish an indigenous-majority-owned entity for commercializing ZVS technology in Canada.
  • PFN invested $3 million directly into Hillcrest.
  • Focus areas: Energy storage systems, AI data centers, remote microgrids, and critical infrastructure.
  • Pursuing non-dilutive financing via government grants and qualified investment entities.
• Product & Technology Updates:
  • ZVS PCS1000: 200-kilowatt, 1,000-volt power conversion system expected for customer demonstrations in Q2 2026.
  • Scalability: Modular design scales to 1.2 megawatts with N+1 redundancy and hot-swap capability.
  • Efficiency: Superior efficiency exceeding 99% (vs. 96-98% for current inverters); 0.5% efficiency improvement equals 500 kW avoided losses in a 100 MW facility.
  • Technical Specs: Ultralow electromagnetic interference (EMI), higher switching frequencies, up to 50% capacitor size reduction, and 60% filter size reduction.
• Market Validation & Automotive:
  • Completed extensive validation testing with automotive OEMs and Tier 1 suppliers in 2025.
  • Advanced commercial conversations underway with global entities for automotive monetization.
  • Automotive Center of Excellence in Germany (via Systematec GmbH) supporting joint development and licensing.
• Market Opportunity Data:
  • Data center power market projected to reach $50 billion by 2030.
  • Battery energy storage systems (100kW-1MW) market projected at over $100 billion by 2030.
  • Emergency power systems market projected at $18 billion by 2030.
  • Portable/mobile power applications over 100kW represent >$10 billion annual opportunity.
  • Canada’s clean energy market projected to grow from 115 GW to 149 GW by 2030.
• Executive Compensation:
  • Grant of 7,583,333 restricted share units (RSUs) to several executives.
  • RSUs relate to 2024 and 2025 performance.
  • Subject to a four-month hold per Canadian Securities Exchange policies.

Notable Quotes

• "As we enter 2026, Hillcrest stands at a pivotal inflection point where years of technology development are translating into tangible commercial opportunities across multiple high-growth sectors... Our strategic collaboration with Pasqua First Nation and Apeiron Resources, combined with successful completion of our financing, provides both the resources and market access to accelerate commercialization of our ZVS technology across Canada..." — Don Currie, CEO
• "The strategic investment from Pasqua First Nation reinforces the value of our collaborative approach to commercializing ZVS technology. Combined with the successful retirement of debt, we're now positioned to accelerate development and deliver on the commitments we've made to our shareholders and partners." — Don Currie, CEO
• "We're not just ready for 2026. We're positioned to lead." — Don Currie, CEO