HPQ Silicon closes $1-million private placement

Executive Summary

• HPQ Silicon Inc. has closed a non-brokered private placement of 6,170,442 common shares, raising gross proceeds of approximately $1.0 million.
• The transaction includes significant insider participation by CEO Bernard Tourillon, who subscribed for nearly $100,000 worth of shares.
• Net proceeds will be used for general working capital and to advance commercialization initiatives across three core technology pillars: Fumed Silica Reactor, HPQ Endura+, and Metagene.

Key Details

• Transaction Structure: Non-brokered private placement of common shares.
• Shares Issued: 6,170,442 common shares.
• Price Per Share: 16.25 cents CAD.
• Gross Proceeds: $1,002,696.83.
• Statutory Hold: All securities are subject to a four-month-and-one-day hold period under Canadian securities laws.
• Regulatory Status: Subject to final acceptance by the TSX Venture Exchange.
• Agent Compensation: HPQ issued 333,303 warrants to CI Investment Services Inc. as commissions.
  • Warrant Terms: Each warrant allows the purchase of one common share at an exercise price of 18 cents per share.
  • Warrant Duration: 48 months from the closing date.
  • Warrant Hold: Subject to the same four-month-and-one-day hold period.
• Insider Participation:
  • Bernard Tourillon (Chairman, President, CEO, and Director) subscribed for 615,384 common shares for $99,999.90.
  • Post-transaction, Mr. Tourillon beneficially owns or controls 22,796,794 common shares, representing approximately 5.29% of issued and outstanding shares.
  • The transaction was approved by the Board of Directors and relied on exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9, as the fair market value of insider participation did not exceed 25% of market capitalization.
• Use of Proceeds:
  • General working capital and corporate purposes.
  • Fumed Silica Reactor (FSR): Client-driven commercial scale-up and revenue generation pathways.
  • HPQ Endura+: Commercialization of Endura+ cells and advancement of the NRCan-supported silicon-based anode material program.
  • Metagene: Technology development and commercialization of the autonomous green hydrogen production platform.

Notable Quotes

• "My $100,000 investment reflects my conviction in the company's ability to deliver on the near-term execution priorities and my continued confidence in HPQ's strategy and long-term value creation," said Mr. Tourillon. "With multiple technology platforms now transitioning from development to commercial readiness, these funds allow us to maintain momentum, advance near-term milestones and remain disciplined as we move toward revenue-generating activities."