Hybrid Power Solutions awarded $12,000 in grants

Executive Summary

• Hybrid Power Solutions Inc. has been awarded two grants totaling $120,000 from Ontario's Critical Industrial Technologies (CIT) initiative to accelerate the development and commercialization of its HPS Air portable power platform.
• The funding includes $20,000 for talent development internships and $100,000 for development and commercialization, which includes exclusive access to the uWaterloo-RoboHub for engineering and prototyping.
• Concurrently, the company adjusted the exercise price of stock options previously granted to Sophic Capital Inc. from $0.04 to $0.05 per share, with specific vesting and expiration terms.

Key Details

• Grant Amounts:
  • $20,000 via the CIT Talent Development Internship (TDI) program to support technical talent expansion for HPS Air.
  • $100,000 via the CIT Development and Commercialization (DC) program.
• Grant Benefits:
  • Exclusive access to the uWaterloo-RoboHub (powered by Rogers CIT technology development site).
  • Support for engineering, prototyping, and commercialization work.
  • Access to facilities mimicking real-world environments, including precommercial Rogers 5G network for testing robotic products and automation services.
• Strategic Context:
  • Part of a broader Ontario government investment in 329 CIT projects announced on March 2, focusing on 5G, AI, blockchain, cybersecurity, quantum, and robotics.
  • Aimed at strengthening Ontario's innovation ecosystem and supporting SMEs in global competitiveness.
• Option Grant Adjustment:
  • Counterparty: Sophic Capital Inc.
  • Previous Exercise Price: $0.04 per share.
  • New Exercise Price: $0.05 per share.
  • Quantity: Up to 1.03 million common shares.
  • Vesting Schedule: Quarterly in four tranches of 257,500 shares each.
  • Expiration: The earlier of (i) 90 days after termination of engagement, or (ii) February 18, 2031.
  • Governance: Subject to Hybrid's stock option plan and Canadian Securities Exchange policies.
• Upcoming Events:
  • Conference call scheduled for Thursday, March 5, 2026, at 4:30 p.m. Eastern Time.

Notable Quotes

• Francois Byrne, CEO: "We're excited and grateful to receive not one, but two program funding awards from the Critical Industrial Technologies initiative... This backing accelerates our progress on HPS Air and supports the technical team driving this next leap forward in portable energy."
• Claudia Krywiak, President and CEO, Ontario Centre of Innovation: "Strategic investments through the Critical Industrial Technologies (CIT) initiative accelerate technology adoption, reduce commercialization barriers and position SMEs [small and medium-sized enterprises] to compete global while delivering impactful solutions across key sectors such as mining."
• Raed Kadri, VP of Strategic Initiatives, OCI: "Through CIT, we are supporting companies as they move from innovation to commercialization, leading to stronger supply chains, the creation of good-paying jobs and securing Ontario's position as a global leader in industrial transformation."