Hybrid arranges minimum $1-million private placement

Executive Summary

• Hybrid Power Solutions Inc. announced a non-brokered private placement of units priced at $0.06 per unit, targeting gross proceeds between $1 million and $2 million.
• Each unit consists of one common share and one common share purchase warrant, with the warrants exercisable at $0.10 per share for 24 months.
• The offering includes an acceleration clause allowing the company to shorten the warrant expiry if the share price remains at or above $0.20 for 20 consecutive trading days.

Key Details

• Transaction Type: Non-brokered private placement.
• Unit Price: $0.06 per unit.
• Quantity: Minimum 16,666,667 units; Maximum 33,333,333 units.
• Gross Proceeds: Minimum ~$1 million; Maximum ~$2 million.
• Warrant Terms:
  • Each unit includes one whole common share purchase warrant.
  • Exercise Price: $0.10 per share.
  • Duration: 24 months from issuance.
  • Acceleration Right: If the closing price of common shares is at or above $0.20 for 20 consecutive trading days, the company may accelerate the expiry date by giving notice, causing warrants to expire 30 calendar days after the notice date.
• Insider Participation: Certain insiders may participate, constituting a related-party transaction under Multilateral Instrument 61-101. Participation is expected to be exempt from formal valuation and minority shareholder approval requirements as the value does not exceed 25% of market capitalization.
• Use of Proceeds: Company operations, product and company research and development, sales growth initiatives, marketing, general corporate purposes, and administrative expenses.
• Regulatory Status: Offered under the listed issuer financing exemption (NI 45-106). Securities are expected to be immediately freely tradable with no hold period in Canada.
• Conditions Precedent: Completion is subject to regulatory approvals, including approval from the Canadian Securities Exchange.
• Finder’s Fees: The company may pay finders' fees on a portion of the offering.

Notable Quotes

• None provided in the text.