Hillcrest Energy to close financing tranche in January

Executive Summary

• Hillcrest Energy Technologies Ltd. has updated its previously announced private placement offering, increasing the total aggregate amount from $7.2 million to $7.25 million due to oversubscriptions.
• The company expects to close the second tranche of the offering in early January 2026, which includes a $3 million strategic investment from Pasqua First Nation.
• The offering structure has been adjusted: the cash component is increased to $4.4 million, while the debt component (settled via units) is reduced to $2.85 million.

Key Details

• Total Offering Value: Increased to $7.25 million (up from $7.2 million).
• Cash Offering: Increased to $4.4 million, raised via issuance of units at $0.09 per unit.
• Debt Offering: Limited to $2.85 million, settled through the issuance of units on the same terms as the cash offering.
• Strategic Investment: The second tranche includes a $3 million investment from Pasqua First Nation.
• Closing Timeline: The second tranche is expected to close in early January 2026.
• Regulatory Status: The closing will trigger securityholder approval requirements under CSE Policy 4 due to the potential issuance of over 100% of outstanding securities. However, the company will rely on the financial difficulties exemption under Section (2)(b) of CSE Policy 4, determined by the independent audit committee to be in the best interests of the company.
• Use of Proceeds: Further development of ZVS technology, marketing to potential customers, investor relations, retirement of existing accounts payable, and general working capital.
• Hold Period: All securities are subject to a statutory four-month-and-one-day hold period.

Notable Quotes

• "The company expects that it will close the second tranche of the offering in early January, 2026, which will include the strategic investment from Pasqua First Nation in the amount of $3-million."
• "The company now anticipates increasing the amount of the cash offering to be an aggregate of $4.4-million and that the debt offering will be limited to $2.85-million. This updated total includes an anticipated increase of the total offering amount from $7.2-million to $7.25-million due to oversubscriptions in respect of the cash offering."