Hillcrest closes final tranche of unit offering

Executive Summary

• Hillcrest Energy Technologies Ltd. has closed the final tranche of its previously announced unit offering, raising gross proceeds of $4,593,118.86.
• The transaction involved raising cash through a private placement and settling existing debt with an arm's-length creditor by issuing units.
• The company issued over 51 million common shares and warrants, with proceeds designated for ZVS technology development, marketing, debt retirement, and working capital.

Key Details

• Gross Proceeds: $4,593,118.86 raised in the final tranche.
• Price Per Unit: $0.09 per unit.
• Cash Offering Details:
  • Aggregate gross proceeds: $3,642,879.96.
  • Units issued: 40,476,444 units via private placement.
• Debt Settlement Details:
  • Proceeds from debt settlement: $950,238.90.
  • Units issued: 10,558,210 units.
  • Creditor: Arm's-length creditor.
• Cumulative Offering Totals (All Tranches):
  • Total cash offering size: 48,972,556 units for gross proceeds of approximately $4,407,530.
  • Total debt settlement size: 31,581,634 units in settlement of approximately $2,842,347 of debt.
• Securities Issued:
  • Total common shares issued: 51,034,654.
  • Total warrants issued: 51,034,654.
  • Structure: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.12 per common share.
  • Duration: 24 months from issuance.
  • Accelerated Expiry: Triggered if common shares trade at a VWAP of at least $0.36 for 10 consecutive trading days (any time after 4 months), subject to 30 business days' notice.
• Use of Proceeds: Further development of ZVS technology, marketing to potential customers, investor relations, retirement of existing accounts payable, and general working capital.
• Strategic Context: The closing reinforces a memorandum of understanding with Pasqua First Nation (PFN), which had the ability to invest $3 million directly into Hillcrest to support ZVS technology development and general operating needs.
• Regulatory: Securities are subject to a statutory four-month-and-one-day hold period.

Notable Quotes

• "The closing of this final tranche represents a significant milestone for Hillcrest. The strategic investment from Pasqua First Nation not only strengthens our balance sheet but reinforces the value of our collaborative approach to commercializing our ZVS technology. Combined with the successful retirement of debt and strong investor interest, we're now positioned to accelerate our technology development and deliver on the commitments we've made to our shareholders and partners." — Don Currie, Chief Executive Officer